Absurdity. Retailers were already running dry on Xbone pre-order allotments. Microsoft was looking ahead to the future. Digital distribution is the future, and along with it DRM. I would much rather my console phone home once a day than have to have a disc in my tray to play.
The future hasn't happened yet, and it likely won't happen in this console generation. Hell, back in the CD days, people were saying that Music would go digital with the advent of Napster. It's been how long and CD sales (Despite what the RMAA wants you to believe) are stronger than ever.
People want hard copies. We've ALWAYS wanted something physical to say "I own this!"
This is why novels are still being sold, despite the ease of owning a tablet and Amazon and other E-Book vendors.
I could be wrong, but I find it hard to believe that this will be the future that we want, as opposed as the future that we're forced to accept.
As far as the price, given the kinect being bundled in, it's fine where it is.
Not to most people. Sony pulled this BS back with the PS3, and it took them two years before they sold as many consoles as MS did. And they've been lagging behind this entire generation. Despite having the largest and most diverse line up of games in the entire generation.