It's honestly baffling that there is a defense force for a policy that is, in the most pure and stark sense of the phrase, against the consumer. Being a consumer is all about having choices and feeling empowered in those choices. If you don't like a product, you have the option to simply not buy it, or buy a competing product instead. What this policy does is remove the option. You don't get to look at a game and decide for yourself, with your own money, if that game is right for you or not.
Wanting to avoid a situation where your customers feel like "second class customers" doesn't work when you don't allow them to spend their own money discriminately. Very ironically, this policy is doing to its customers what Mr. Spencer said they were trying to avoid in the first place.
And of course this is bad for developers too. It's like Xbox is so big that they legitimately do not understand that some indie developers are a very small team and work long hours to put out a product that may not see any return on their investment for years. This is why so many accept funding from a publisher or platform holder. Otherwise, they may not even be able to make the game at all. Does Microsoft not understand that if somebody quits their day job to develop a game, they do not have an income and cannot, y'know, sustain life? Food and shelter cost money...
And then a year later when the game is released, yay, they made some money, and it's time to start a new development cycle on a new product, Microsoft comes in and says "Oh yeah, if you want to release on our platform, you have to use that money you made on another platform to develop more content for ours. For free of course, lol. Also, there's a few more things you should know, which are <SUBJECT TO NON DISCLOSURE AGREEMENT>." And ironically again, it's seemingly only the more prominent, popular indie devs that get waived for this policy. The devs that this is hurting most are the ones that need the most help.
It's against the consumer, it's against the developer, and if you're sitting there thinking "yeah, I'm not buying a game at full price a year late, so hooray for Microsoft," you're being very selfish.