I think having a console with the ability to update/patch a game is a great idea.
Quality control is irrelevant as far as I am concerned. On a console you don't have to worry about the hundreds of graphic cards and sound cards, you just have the one set of processors. How difficult is that to do?! Just like coding an Amiga is fact so it's not difficult to get games working is it?
I would give Counter Strike/Strike Force as a good example of how successful this is. Free mods for a commercial game.
As for the debate on the X-Box...Yep it's shite, but I wonder how many criticised Sony/Nintendo/Atari for moving in the direction Microsoft are?
I ain't exactly a fan of Microsoft, but give me an alternative? Linux? No thanks I love Photoshop to much but I do use linux in work on the web server.
On the matter of Windows, give Win2000 a try. It's never crashed on me since I installed it a year ago. Highly reliable and XP looks even better.
I would agree that games are just clones of other games, but what do you expect. You think coders are going to write their own 3D Enviroments, or license the Quake/Unreal engine to save time and money? Tough choice for shite software companies who want quick returns.