The MS store by my house is pretty well packed any day these days (no it's not Seattle).
It definitely wasn't when it first opened. I think people were thinking their Apple friends in the store within eyesight might see them which in turn would lower their social standing among that crowd.
I've had an Xbox for years and don't feel burned as a customer. Xbox Live has only gotten better. Like with any console, the games and graphics were as good as they were going to get about 2-3 years in. PSN is still pretty lame. Sony, as a company, has been on a steady decline the past decade. The things outside the gaming is where I see value in these consoles.
At any rate, if you really want to see the best gaming, you're still going to have to drop $2.5-$3K+ on a PC. You could put together a PC with performance comparable to a One or 4 for around $1.2K. Additionally, on the PC, you can upgrade as necessary. With the One or 4, you'll be staring at the same hardware a decade from now.