To be clear, and I wasn't with my last message.I maybe missing something here, but aren't you still talking about Backwards Compatability here?
BC = being able to play old games "updated" on new hardware.
Whereas:
FC = being able to play new next-gen games on legacy hardware, but with lowered settings.
The former isn't much different from what we've had in many console generations since their inception. Ok, with Scorpio we can now see titles natively up-rendered. I doubt that will change with XBTwo being able to up-render XB1 games to 4k or beyond...
...I'm not sure it follows thus that Scorpio and XB1 will be able to play XBTwo games.
BC like Scorpios would be great since it allows new hardware to be able to push old software to new heights without devs being required to go back and patch those old games.
FC (by the definition I give it above) would mean all next-gen games would have to be able to run on old legacy hardware, thus meaning devs would have to spend time tuning, testing and QA'ing their next-gen games for old consoles forever (down to a minimum hw cut-off). Meaning, software will inherently be held-back by weaker hw forever.
Not sure why anyone would want that.
a) Forward compatibility is a choice the developer makes. When X2 arrives it's entirely up to developers to choose to release the title for X1 and/or X2. MS will continue to support the X1 platform even though X2 is released. That's my understanding of their vision of forward compatibility. Games that are built in the X1 and want to continue to span generations of hardware because it's an eSport or because it's a MMO-lite based game. They want to ensure that their model supports those titles, as hard cut generations have significant impacts to the shelf life of games that follow this model. It also continues to give Indie games access to a significantly larger player base as the hardware generations continue to move forward. Not many indies are capable of fully saturating hardware the same way AAA devs do.
So the idea of forward compatibility from a technical perspective doesn't really exist, this idea that the hardware today will be capable of playing the games in the future with the same setup is likely false. Graphical scaling will be possible though.
But what if we defined FC like how MS has merged old 360 games to become X1 and 360 physical boxes, (image below) what if next gen physical disc now reads X2 and X1?
Its entirely possible that MS has more in store for X1 (different hardware variants) even after X2 is released. I think MS will have something figured out, they seem extremely committed to building out their platform more so than building a first party portfolio.
We'll likely know more if they are on this path after E3, but they do seem committed to adhering to the notion that you should be able to use any of your software on any of your devices.
b) X1 and X360 games can have their settings upgraded with Scorpio, but not all of them. It would appear that AF is a global feature that they can control, not sure if they have control over any other options. The rest of the work needs to be patched in, luckily with Scorpio this is straight forward.