While I am totally against DRM's and their used game policies, if I was in MS shoes I would of stuck with the policies they had instead of backpedalling off of the consumer backlash. No one would really know how it would translate into real world numbers. Had they failed, they would have a legit reason to change like poor sales. Instead people may take this change as seeing MS unclear with their ideals and beliefs. Sometimes its good to be stubborn and see if you can be prove wrong.
MS went through that period with the RROD with 360. People were still buying them after the backlash. My bet, people would of eventually gotten use to the policies. And MS would of made some hard earn dollars.
Console wars are not won by a sprint race. Its always is a marathon. You can make mistakes and recover from it.
Yes. Here's how you normally deal with mistakes:
1. you recognise you made a mistake
2. you admit you made a mistake and apologise
3. you rectify the mistake
So yeah, while there's still a fair bit of damage done to the company's image, I think they absolutely made the right decision. The negativity from many in the press regarding this policy (there are a lot of collectors in there) has put everything about the Xbox One in a negative light, with the press (and enthusiast public) having a strong desire to see things in a negative light.
So the best thing they could do is start with removing that 'desire'.
EDIT: even on Jimmy Fallon, Microsoft got punished for it:
https://www.youtube.com/watch?v=Csr6ahk5RMg