Sonic_13 said:
The problem is that no one is really differentiating between "always online" (which pretty much every system is - Wii, Wii U, 360, PS3, 3DS) and "required to be always online".
I don't believe Adam Orth ever mentioned that the next Xbox would require a constant internet connection, just that it would be always online. He did say "Every device now is always on." That is basically true, but nearly all of them operate offline. Applied to the next Xbox and you have a system that gets most of its functionality from being online, but can still be used to play (most) games offline.
While you bring up a valid point, this rumor of a required always on console didn't start appearing until recently. By the line of logic you are using to explain away this potential blunder, they could have just as easily been making the same rumors about the Wii, Wii U, PS3, X-box 360, and original X-box.
Those rumors didn't exist, which leads me to think that there may be some serious discussion down at Microsoft HQ about the feasibility of requiring the console to be always on. These may well just be rumors, and could even be Microsoft's way of testing the waters by gauging gamer reaction.
You do know that some bean counter is down at Microsoft right now crunching the numbers of potential consumers minus backlash as equal to or greater than pirated and used games as a means of justifying this shift.