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
The flaw in your assumption is that their policies were a mistake. Those weren't a mistake. The mistake was the communication plan. MS has now compounded their mistake by backpedalling from a forward-looking set of policies to a pander to a bunch a worthless, clueless luddites.