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$499 USD ($599 CAD) is a good price for the hardware, but its still a touch too high for the console space, and way to high in comparison to the Pro. No way PS lowers the $399 price of Pro now.
When Phil mentioned some 4k game upgrades would be free at no cost, it was a bit of a tense moment, and right then I knew that they had kept the price till the end for the same reason. Make sure everyone see's what your offering first, then give them the bad news hoping you already have them hooked.
If MS is lucky they will end up with the same 1:5 attach rate that the Pro has. If they are really lucky, they will steal some PS players that want more performance, or XB PS4 gamers that may decide to switch back now.
They showed that they are definitely putting more effort into the games focus than they were before, but unless there is some bigger/clincher news between now and launch, I don't see XB1X pushing many units.