I can't see how it would be ideal to have one dominating companies as opposed to 2-3 competing companies. New and differing ideas, products, methods, etc. are always good for any market. I personally found the 7th generation to have the greatest library of all generations, even despite the rising development costs. This is something I must attest to the pressures on Sony as a result of more serious competition. One could make the argument that they preferred the games from the PS2 and PS1 generation, but that would simply be opinion.
The argument that certain competitor's products/policies are bad for the market doesn't make much sense in this context. The success or failure of a product/policy relies solely on the market's satisfaction with that product/policy. For example, If the market was receptive to Microsoft's price for online gaming, then that's not bad for the industry; it's good. The fact that people would voluntarily give up money for a service by Microsoft means that they believe that the benefits of the service outweighs it's cost; they feel it's a mutually beneficial exchange. You could say paying for XBL isn't beneficial, but that would be subjective as well - and would not be in line with what the market feels.
This applies to any other offering from Microsoft. If the market enjoys it, then there is no basis to say that it's bad for the market. The key lies in the fact that it's a voluntary exchange and that people are choosing to spending their money in a way they see is beneficial. If Microsoft somehow forced/tricked people to buying their products, then that would be bad for the market.
But most importantly, these forums will be extremely boring. When the the PS3 was selling only slightly above-average numbers, the forums were already heavily Sony. Can you imagine if the Xbone was no competition? Then there would literally be one or two Xbox fans on here. Everyone comes to this website for different reasons, but for me, that would be no fun.