This sounds more like what you wish would happen, rather than what's likely. MS's lineup is actually becoming more and more like the PS2's every day, which I'm sure you'll recall had a home for just about every type of player.

A game console can be more than one thing — if Singstar can exist alongside God of War, then surely Lips can exist alongside Gears of War. Microsoft is not going to abandon their hardcore audience—a demographic that clearly is buying more software than any other group on any other console—to appeal to the casual player. They have, and will continue to, make games for both groups.

Yeah it feels like you need to jump through more hoops to get to the non-advertised games. Also, I don't see what's simpler about adding extra menu's like Spotlight and What's new that seem redundant and obligitory anyway.

Netflix is really the only thing likable so far, which is a BIG +. Set up an annual Gold subscription tonight and will be getting NetFlix soon.

The new interaction for shutting down the console seems a bit more responsive and I am liking it better.

Avatar's are OK, They need to allow you to alter the colors on the clothes though.

I hope they allow people to bring back the blades

After looking back on the NXE, these are the "swooshes" that need to go: events and spotlight.
Inside xbox needs to be merged with video marketplace, and the friends "swoosh" needs to go before the marketplace tabs.