I completely and utterly disagree. What Microsoft is doing now is the best thing they could do.
Consumer trust is not something re-earned in a heartbeat. It requires commitment, it takes time, but it yields grest results. Sony sticked to the PS3 until the very last and it worked for them, especially going into the following gen. Not only is this the right strategy as its the only strategy that can lead to microsoft getting back in the race next-gen.
Unless, they want to be different from Sony in a way that they dont compete with them anymore directly. A bit like Nintendo. It would be a very different xbox and without those sure fire Nintendo franchises hmm... very difficult.
I agree with most that they need to invest and be willing to take some losses in first party studios. They shot themselves in the foot when they decided to only focus on 4 franchises.