I think some people get too caught up in the 'console wars' to look at these things without a slant. Step back from the gaming part and just look at it as a media device.
What is so bad about awarding the X1 as an exciting media device? Remember, the award is clearly slanted towards users that are fans of all in one devices that can offer a wide range of entertainment experiences. MS has positioned the X1 to be just that. Since its not out yet, who knows if it will turn out to do that well, but there is potential.
This isn't some slight against the ps4. If this was an award about best gaming console, then I get having an issue.
I think using the term 'innovative' is what creates the problem for some. Innovation is one of those words that have a wide range of meanings, something different for everyone. Its a word that has almost lost meaning to me personally because its so overused.
I don't think the X1 or PS4 are innovative based on my definition of it, but instead, both are evolutionary upgrades to the previous gen. If Kinect was introduced on the X1 and not the 360, then I could see using 'innovative' since its a new thing, but its not. Nothing about the X1 is completely original, just upgrades or improvements to ideas from the past.