I didn't watch any actual video or anything, what were the 2 free games per month? Like, arcade-type titles I assume? Do you only get them for that month, or are they permanently unlocked for your account? I find this idea appealing, hopefully it's implemented well. I definitely like that they're adding more value to Live, since I still believe it should be a free service anyway.
Otherwise, I tend to agree with you @chunkaroonie, Microsoft is acting like they don't have any competition and it seems like Sony is besting them this round in a lot of ways. I think "ignorant and arrogant" is the perfect description, I just don't get how they can completely seem to ignore what their competition is doing. It's absolutely baffling to me, I can't get over it! Charge more for their console, charge for online access, don't let your rent or buy used games, then on top of it they're gonna check on you every 24 hours! You won't need to check on my games, I'll be too broke to buy any!