That was my reaction above. Seriously, this is such a weak effort to win people back and win their money. They knew that they were in trouble with the backlash from the fans and Microsoft fans moving over to the PS4. I really hope people don't forgive them instantly for this and think they have done it to benefit the fans, because they haven't.
I find it ironic that the Microsoft site says "Your feedback matters", it hasn't mattered before this console, so why does it matter now? Let me change that "Your MONEY matters." This is all about money; every company wants to make the best margins on sales and no one can deny that. But this U-turn on their 'amazing system design' has just made them the laughing stock of the industry to people and gamers who don't believe everything Microsoft say.
It makes the E3 conference look like a massive embarrassment. Everything they said there was 'Xbox One is the future with these features'. So, what now? You conceding the future for your fans? If a company really believes their ideas will pave the way for a new feature of gaming, they aren't going to back track on an idea, unless they know they won't have enough sales money on the Xbox One to actually attempt a future plan.
They made a poor decision with the original idea, they have lost respect from people my making the U-Turn and they just come across as cowards now.