You seem to be mistaken that MS need to please anyone but the gamers. No gamers on your console, publishers won't sell games, they'll produce less for it and spend less time on it. Retailers will notice your console games don't sell well and dedicate more space to the ones that do.

Please gamers, then please everyone else.

On your points, 1 isn't an option, they'd alienate too many people too quickly. In option 2 though you are right, they are in a weird middle ground and they aren't quite a TV box but it is hard to enter such a market like that when established companies already hold huge ground.

Most people seem to think microsoft is doing too much to restrict gamers but I actually don't think thats their real problem. Their real problem is how convoluted and confusing those restrictions are. They are trying way to hard to please too many people. They will never find a "perfect balance between the needs of publishers, retailers and gamers." They're just going to piss all of them off.

Rather than boldly moving into the future, microsoft is trying to have it both ways. Everything they are doing is a half measure designed to take baby steps forward while not rocking the boat too much. If microsoft were really serious about moving forward here is what they should have done.

1. CREATE A CONSOLE WITHOUT AN OPTICAL DRIVE! One obvious advantage is that they would save money and could reduce the price of the console, but more importantly there would be no confusion about used games or internet requirements. It would be built in. No confusing, 10 person, 1 gifting, 30 days on friends list bull crap.... NO USED GAMES PERIOD. I personally would have much more respect for microsoft if they took a hardline stance rather than trying to throw petty crumbs at gamers. There would also be no question as to whether you need an internet connection... Yes you do, end of discussion. Obviously this would be problematic for a lot of gamers but many PC gamers are already used to this set up. They wouldn't have a problem with it as long as the messaging was clear and simple like it is on steam.

Had microsoft revealed xbox one without an optical drive gamers would've gotten the message. They would know that they were being dragged into the future and they would at the very least understand their choice. As it stands now, most gamers are just confused, nothing is being properly communicated. The reason sony's "were not changing anything" policy works, isn't just because its "not evil", its because its crazy simple. It doesn't require a 10 page rule book and people like that.

2. REPLACE THE CABLE BOX! Instead of trying to supplement the cable box with another huge box, microsoft should be replacing it. They should have entered a deal with AT&T, Verizon or maybe even Google to take on the major cable companies (comcast and the others). I'm sure Verizon or AT&T could use someone to help ease the burden. How can you be the "all in one" system when you're only supplementing the cable box?

When you try to make compromises to please everyone you usually end up pissing off everyone instead. Thats exactly what microsofts current system does. Despite all the caveats, gamers are still pissed off because they are losing rights, retailers are pissed off because of used game restrictions and/or day one digital downloads and publishers are pissed off because they still have to deal with brick and mortar retail and they WILL be pissed off when you're system isn't selling enough copies due to anti-consumer policies and confusing messaging. If microsoft really wants to be more like their idol Apple, they need to start making bold moves and stop with the half measures.

By how their restrictions are, they should just not include a BR drive considering how your retail disk is pretty much worthless. BUT considering they are aiming to be your media center they need a BR; and If it was all digital (which it practically is) Gamestop would not sell the console. For me the vision of the console is disjointed in term of gaming aspects, media aspects, and how the market works. Those aspects seem to have been envisioned separately; and then in order to make both functions compatible the console ended costing more; without offering the advantage of the hardware it has; and with lots of restrictions gaming-wise; and quite a convoluted mess in the other aspects..

You missed the point.

So you want them to remove the optical drive yet add a TV tuner.  Cost wise that's probably a wash.

Also, removing the optical drive has nothing to do with the 10 person, 1 gifting, etc. rules, since those rules apply to digital downloads too. 

Finally, NO USED GAMES period and ALWAYS on would go over WORSE for Microsoft.  I promise you.