There's strategy here, in that come E3 when hype is built there won't be much hype to be shown, where Nintendo and Sony will win by default.
That depends on how dire the PR situation has been for Microsoft. I can't see them sitting on this much great news solely for E3 with the
tremendously negative sentiment has dominated their coverage. In fact, I would expect them to hold this news back until the release rush/buzz died down and then release it to spur more sales once demand fell through. Which is precisely what has just happened. If anything the timing of this (along with their other known calculated PR moves) seems suspect. But, like I said, as long as it all is indeed #truthfact it doesn't really matter if it was a managed or spontaneous leak.
DD wouldn't make up for the price difference given the enemies they'd make and how few people are willing to accept this as the standard just yet.
I think you'd be surprised how many people would be open to a digital only system. Look at the Vita. Digital sales
DOMINATE that platform. Steam has also shown people will accept a digital platform for the convenience that it provides them. I also wouldnt underestimate the massive profit margin increase that digital sales would give Microsoft. MS can cut out distribution and retailer cuts and instead put that money back into their own pocket. Those costs add up fast. They may seem like a small percentage (usually about 10-12% combined on average) but when that is more money in MSs pockets and is guaranteed for the life of the console that seems like an incredibly easy choice to make. That's precisely why they were pushing an all digital future to begin with.