I love how just the idea of EA going to do any deal with MS is viewed as "Devils Work" and people are ready to completely write the publisher off. I think it would be just a tad different if this rumor was going the other way around.
I think it's more people just really don't like EA, yet EA has used their once stronger financial positioning to buy exclusive access to licenses those people really want.
Its not anti-MS, it is anti-EA and the fact that EA doing this almost certainly means a large scale push by at least some major publishers to kill used games sales outright.
All in all it's EA's anti-consumer practices taking the next big step forward.
I would personally love it because EA's big licenses (NFL and FIFA) expire in 2014. This would be a one way ticket to losing both in one fell swoop, completely nutting the company and driving it into THQ-esque bankruptcy within a few years. The end result of that is awesome IPs being freed from their mismanagement.