said, more than likely the publishers wanted the DRM system, which makes sense. We have to remember that the consumer is not the only customer here, the developers make the damn games for these consoles and more than likely pushed Microsoft (and probably Sony) for this kind of setup.
Without the developers there is no gaming, as greedy as it may seem, that's business. I wouldn't blame Microsoft completely, if the developers aren't happy, the developers don't make the games, no games means no console. C'est la vie.