I give it an A-
The one thing missing for me was announcing one big exclusive we didn't know about. And where was Bungie and/or any mention of the Halo universe? Makes me worried that the Bungie game isn't anything huge.
The highlights for me:
1. FFXIII - Ouch for PS3. 360 has become an RPG player's dream.
2. Netflix - I already use Live and Netflix, so this is like I got a big present for free. That rocks.
3. Revamp to Live is expansive and deep. Dig into the feature set and you get lots of cool stuff. Group chat. Optional install of the entire game on your HDD so you don't need to run the disc drive. Easier partying up with friends. Yes the avatars are lame, but whatever. It might help with the casual market, which is good for their sales. But the cleaner look and easier marketplace will help a lot.
4. Lips just owns Singstar. I like Singstar and play it over drinks with friends and stuff. But the fact that you can plug in your iPod and play any song - turns your 360 into a karaoke machine that plays anything. Good stuff.
5. The arcade lineup looks awesome. Galaga is my alltime fave game - so that looks great. Portal is the most acclaimed game of last year, and they have the followup as an exclusive? Geometry Wars 2 looks great too. (Though I was surprised they didn't show Castle Crashers)
I was surprised that they didn't mention Madden at all. They emphasized that so strongly last year. I don't care about it at all, but I was surprised.