You do realize that you're in the minority, right? Not too many people would buy an Xbox and use it for Netflix and though Microsoft is happy to have your money, they probably were not betting the farm that many consumers would have your spending profile.
>Not too many people would buy an Xbox and use it for Netflix
I can very much tell you that's not the case.
And seriously, is everyone missing the point? This is a packaged, streaming video capable player. It will be running Android. It already has more capability than the Nexus Q and is a third of the price.
The point is that this competes with existing game consoles in more ways than just gaming. It doesn't preclude it being a success from gaming, but it means that it has a wealth of other uses.
I can't count the number of technologies that have been priced correctly to sell decently for reasons beyond their primary use. And if you think people don't buy Xboxes to play Netflix, well, I can categorically tell you that you're wrong.