I used to harp on about how Microsoft failed to compromise, but I take that statement back given what I've seen through launch.
The problem Microsoft had wasn't that they had a bad plan, but that they lacked time. If they had the time to properly gauge public opinion, listen to feedback, and adjust accordingly, consoles could be living in more of a true digital age to which PC gaming has been enjoying for roughly a decade or better now. However, one cannot expect the behemoth that is Microsoft to move so quickly, in fact, it's surprising that they were even able to pull the big red lever to reverse their stance entirely.
Time management plays a big factor in everything we do, and Microsoft is no exception. While working there would still be a dream job, I can only imagine with all the work that needs to be done between fixing bugs, oversights, improving their UI, adding or completing features, voice recognition, not to mention adding support for other languages and getting their consoles out into more territories... I can only imagine the hustle that would (or at least, should) be going on over there.
Blame the gamers if you want, but they're not the ones running the company. Microsoft opted for a quick fix, something they wouldn't have had to do if they only had time.
I agree with some of that, but time to engage feedback? Two points, first, how badly online DRM has been blowing up when implemented across individual games (Spore was years ago, Diablo 3 was 2012), and two, the rumours for the One started in 2012 for public discussion - http://www.vg247.com...etcon-required/ Well over a year before release.
Back then they probably thought Sony would do the same, but one thing they sure as heck were getting was feedback from gamers about the proposed always online checks. Most likely then it was ignore the negative feedback, Sony will do it, all gamers will have to live with it... then they ended up the only one doing it and couldn't keep taking all the flak coming their way only.