I'd think that cost cutting was to blame as usual. Blaming engineers is usually the wrong direction to go in. It would probably have a sweet carbon nanotube contraption if cost wasn't an issue.
In that case PS3 would be the ideal medium Of course, the budget and the time constraint was to blame (their need to launch first and early and cost), but I think the engineers should have done better. But it can't be helped though, since MS is not primarily a hardware engineering company, and likely contract others to do most of their design.