What Microsoft was trying to do was essentially what Steam is doing... except keeping disc purchases and trade-ins as a viable option. Now we have this bizarre hybrid because people are so afraid of anything but the status quo. I see people beat that "consumer rights" drum and think, "So you're mad that they're taking away a right you never legally had and that GameStop has taken brutal advantage of for years at the expense of the industry? Well... okay... you come up with a better way to handle it, genius." Personally, I loved what Microsoft was trying to do with their original vision. I hope some of it returns on the digital side. Sadly, to preserve bandwidth, I'm having to buy games on disc, install them, license them to my system, then trade the disc in at a loss... whereas before, all I would have had to do was un-authorize the disc when I wanted to trade the game in, and I could have been disc free until that time. Fortunately, the two other people in my house getting Xbox One will benefit from using my discs to do their installs, so they get to be disc free. Post-launch, I'll probably go all-digital.
Also, people keep expecting a digital ecosystem to immediately have Steam-like discounts... and that's unreasonable. Steam was around for a LONG time before they started doing that. You have to establish the ecosystem first, then leverage it. I think Microsoft's original intention of giving publishers direct control over pricing with a quick turnaround would have ultimately resulted in that, though not as quickly as people would have liked. That's why we're seeing so many sales now on 360.