Couple things here really :
1) I prefer someone to tell me if something has an issue before I buy it rather than "Sold as seen". So a pat on the back for Microsoft for that, as they normally go "there are no known bugs". The pricing on this I see as a little high, as I'm paying for product that is already broken. Would also be great if I owned the game on CD if I could then download for free, but that is NOT gonna happen.
2) Downloadable games are the way of the future. Why? you ask :
A)
MONEY. Simple really, the second hand market is killing all of the License/Developers companies (Microsoft, Sony and Nintendo). On a new game, the retailers take 50%, the publisher 25%, and developers 25%. On second hand games, retailers make all the money. I know in the US, Gamestation has more secondhand games than new, and here in the UK, GAME is slowly going the same way. So if in the next gen of game consoles you make all games downloadable, you cut out the retailer thus save yourself 50%, offer the consumer a 25% reduction and everyone would be happy. Also the retailers will not market a game unless they are getting 50%, and all games or on sale or return. So unless retailers start to get a little more understanding, in the next 4-5years they are going to be kicked out of the console market.

Games running off Harddrives are SO much faster than discs.
C) From a consumer, no more scatched dics, no searching for games.
3) Steam Powered. I love steam. You buy your games, and there always downloadable later. This is great as if you trash your PC, you just reinstall steam, and then download all your games again! No need to find CDs / CDKeys etc.
4) Homebrew / Xbox Emulator. Microsoft really need to just make this available to the homebrew scene. What does this do? It gives you access to a couple of developers who will improve this for FREE. Rather than open source, I think it would be great if Microsoft embraced the comunity and gave them a option of working with them. But its not very likely. just think all thoose free developers. The major problem here is, you get the odd one or two people who like to use this stuff against us all, eg virus, the ability to hack consoles etc etc.
Well thoose are my points,
Danny.