I have a fairly decent internet connection at present, but even so, there have been a number of times when my 360 fails to connect, takes a long time, or drops the connection in the middle of a game session. At present, it doesn't cause any real problem for me, as it is just a pop up message or one more screen to click through on my way to a game, but if such an outage were to prevent me from accessing content that I paid for (and probably paid 60$-70$ for, since the main reason to go always-on is for DRM to ensure that the used games market dries up), then it would be a major issue.
I don't play multiplayer games. I don't concern myself with trying to climb leader boards. When I actually GET the time to play a game, I want to play the game. I don't want to compete with some kid who spends 24 hours a day on the damn thing. I play games for story and game play.
Now, if always on drm removes the threat of piracy (hint: it wont), that might be acceptable IF it means we get to pay less for the new games. (Not holding my breath, no offense.)
In any case, I'd rather see developers try to make games that were worth keeping, and not just because of dlc tricks, unless they actually contribute something meaningful to the game.
I adopted the XBOX after getting frustrated with a pair of hardware fails during my PS2 days. I stayed with 360 because I was more interested in western developed games that promised more interesting content instead of Eastern developed games that promised amazing visuals in their cut scenes.
If Microsoft continues to jerk its player base around (I loved the original desktop/theme for the 360. I hated that they jumped on the nintendo Mii bandwagon and revamped the whole interface around it) this generation might see me convert back to worshiping at the altar of Sony.