I hope those hardware issues (if they exist) are going to have a work around even if it means limited (more than usual) availability at launch. It would be a disaster at this point if one company find it-self in a close to monopole situation, temptations...
Overall whereas MSFT has done a dreadful job at communicating about it, the move from owning a physical copy of a game to a license scheme is set to happen, the industry at large will play "all in" for a chance to make it happen (that is why I think Sony will have to match MSFT policies, they won't be in a situation to resist the pressures of Activision, EA, Ubisoft &Co).
The conditions they set for the move to that license scheme are pretty reasonable, it looks better than what the music industry does or what we have for your standard software. Though it is the first step once the scheme is in place... the conditions of the deal can change with following products...
So to me what MSFT has been doing is weird they both got the balls to go that way but they shied away from communicating properly about it. That kind of shift needs the greatest transparency and honesty as for a such a sensitive subject, negativity, fud, etc is likely to insinuate it self in any communication loop hole.
If I were at MSFT at least wrt to used games/ownership/etc. I would let Major Nelson do a 20 minutes video explaining and why not demoing how it works, they need to get as transparent as it gets, otherwise it will be perceived as schemier than it really is.
To tell the truth I'm more bothered with online requirement for games (not the online check of your game ownership which is once a day, not latency or bandwidth bound), I can not longer play D3 where I leave it is too laggy
Now to be honest, if we move to license, I would have preferred if MSFT managed to land an agreement with EA, Activision, etc. and everybody follows the same rules for example:
you can sell your game when it is no longer in its launch windows (1 month for your average game, 2 for big AAA). There is a reasonable fee to pay, but it is a known quantity. Either way the fee is higher during the launch period.
Rental conditions have been negociated with Gamestop and other companies in the business.
Ok I do get that is bad for a lot of people though it is clear, you deal with it or not. Now what are we supposed to expect when every publishers can act on its own will? How MSFT can handle communication properly when what they are selling outside of the games they are publishing them-selves is indeed unknown even from them-selves... Bothering though what big money wants... it usually gets and if a more coordinate move would have been better they won't shy away from it either.