The problem with always online isn't worrying about your connection, its worrying about theirs. PSN/XBL have downtime, things break, SimCity anyone?
True you may not need to be online all the time, but with games needing to be installed, it sounds like it may be an anti used system where you need to be online to register the game. There's no other logical reason for a rumour of needing to install EVERY game. The PS3 streams many games, and we are getting a faster blu ray drive now.
Kinect was always going to be bundled, but REQUIRING it to be plugged in is strange. MS always watching you? Haha.
Well, here is how I can see it. It would be really stupid to not have a backup plan if you could not access the servers.
Microsoft has been working with servers and the Internet for a long time. Now other than Xbox Live itself or MMO games
I would think that you could play if you were not able to get an Internet connection.
It could be an enhancement say enhancing your game using the online experience or of course MMO games which could use it.
Speaking of first world problems, my biggest pain is walking across the room to find the game disk I want to play and putting in the disk.
The install feature would be awesome because I could switch games almost instantly and using voice as well. Remember you can install them while you play them at the same time.
So, installing the game while I play makes me actually happy because that rocks as long as I don't have to find the disk I am fine with it.
Arrogant like Sony were with the PS3, after the massive success of the PS2 they thought they knew best and put out the PS3 with its complex CELL cpu, they originally wanted 2x CELL with one for graphics.
Much like Microsoft is doing now, Xbox 360 was a big success so now they think they can force things like always on, always connected, always watching bullcrap.
Jumping to conclusions and seeing everything as negative. It's not arrogance, it's progressive. You are still living in 1999.
"OMG Microsoft is trying to innovate and be progressive, they are so arrogant!"
You wonder why most people think that people who are hardcore at playing games are so immature. Well, there you go. You just showed them.