I know that, the point is that the main focus of the console won't be the games, it will be all this entertainment stuff. 

Good for "casuals", bad for gamers.

I have mixed feelings about this. The only downside for me was the blocking used games. Now what am I supposed to do with my Gamefly membership?

Heres hoping mini $99 360 and Halo 2 are at E3

http://www.computerandvideogames.com/407912/microsoft-confirms-pre-owned-fee-for-xbox-one/

Still buying next xbox as will do the ps4 but damn this stinks for us sharing gamers. As a future to be broke college student that's messed up. DId MS even think about the college croud. Kinect, voice gestures both don't bode well in a dorm enviornment. Also MS didn't even tell us much about the hardware inside of the next xbox so what does it tell us about how it compares to the ps4? Do MS know that the next xbox is weaker than the ps4? Also this confrence was filled with fake ass corp. execs who couldn't care less about gaming. Comparing the 2 press conferences Cerney owned it while the xbox show looked half assed.

people just need to remember that they said that E3 was about the games this reveal was about the console.

A) the not always online is wrong I think. It has to ping online services to say if you've got rights to a game and they stated over and over the importance of the cloud.. .in that "games ... are always with you where ever you are". I do think that its not "always online" but it does "require an internet connection" which is the bigger issue. (frankly I think it something PS4 will also have and the biggest reason EA backed off of Nintendo as they wouldn't incorporate that through Origin like MS and probably Sony have)

B) The 15 exclusives (8 new IPs) is not as big as you make it to be. Its for the entirety of the first year. So Q4 2013 all they way through Q4 2014.

For comparison, Wii U has quite a few known coming as well in its first year... (well not 8 new that we are aware of yet)...
1. Nintendoland
2. NSMBU
3. LegoCity
4. ZombiU
5. SMB
6. . Mario KartU (vs Sonic)
7. ZeldaWWHD
8. Wonderful 101
9. Pikmin3
10. Game & Wario
11. MH3U
12. Wonderful 101
13. ?NSLuigiU
14. Sonic Lost World
15. (very likely a few others I'm forgetting or will be shown at E3)

C) I was impress with the overall system and OS. It shows the next-gen focus is equally on services as games as I predicted early 2012. (though Wii U didn't follow through on that) However, they really should have followed Sony's lead and had a bigger presence to those games they intend to show at E3. Even one or two of the exclusives would have been significantly better than zero.

5 core centric games, 5 casual Kinect games, 5 small XBLA games is what im guessing.

Wait, so, to play a second hand game you must have an internet connection?

Not enough information yet.  I assume so since you will have to verify it. Unless they also sell codes at stores which wouldnt be surprising, like they do with other online items.

I seriously don't understand how you can think that system looked good... But to each their own! I won't rain on your parade =)

I'm still psyched to see those 15 exclusive titles!