The rumors about Microsoft wanting to make the 720 the center of the living room have been around for some time. This isn't the first time we've heard about TV tuner functionality, and we've also heard about DVR functionality. Even the 360 had started to move in this direction, with more and more online TV aps being added and even a web browser. I think it's a good thing that Microsoft isn't just concentrating on games, a set top box that does just about everything I could want it to plus play games sounds like a good choice to me. I won't need my aging Roku model or my aging Sony Bluray player (which has started losing support on several aps anyway) anymore becuase the 720 has even more set-top box functions. Plus I get Halo, Fable, Forza, and maybe even 3 new exclusive IP's if that rumor from a supposedly reliable source awhile back is true.
It seems to me like Sony is focusing the PS4 on the core-hardcore gaming segment, while Microsoft is focusing the 720 on the casual-core gaming segment. As a core gamer that sometimes plays more casual games with my friends who I know are favoring the Next Xbox, it just seems like the better route for me personally. Price will also be a major factor for me and the 720 is rumored to be cheaper.