I don't think the consumer was ready at all for Microsoft's vision. If they thought their sales weren't hot now, they wouldn't be happy if they went through with their original plans.
No disk drive, all digital, no used games, DRM. Now imagine the same Xbox One hardware at $500 with those missing features.
I'm a physical media guy but I do praise Microsoft for trying to go digital. The problem is that there are still a lot of people that don't have good internet connections, there are bandwidth caps in place and a lot of people share and want to sell their games.
The big problem is that the changes benefited Microsoft since they could control the content and make more money. It hurt the consumer. Their vision was all about them and their profit.
If they would have announced an all digital XB1 with a Steam-like game system, cheaper prices, selling used games, etc. then it would have been a totally different reaction.