X-One tried to replace television. Yet, it requires a television to function. Fail.
X-One tried to become a PC. Yet it lacks anywhere near the current power of a modern PC, as well as the vast majority of programs and usefulness of a PC, therefore it failed at that objective as well.
X-One took a huge step back from its core demographic, and began focusing on the Frat/CoD demographic solely, as can easily be discerned from the fact that being able to watch Sports on the X-One (Again, you can already do that on your television) as well as basically only showing off CoD: Ghosts at the reveal were the two main points they tried to sell at the consumers at said reveal.
Microsoft showed their inherent greed by refusing to allow used games to be played on the system, and somehow thought that giving ten people you put on your own console a glorified demo system (the family "sharing" feature) while forcing the person who owned the game to use their own bandwidth to allow said demo somehow made up for it. Microsoft had clearly shown with that act that they feel that someone who pays $60+ for a game and $500+ for their console do not, in fact, own said console. A gaming console is not like a house, you do not pay mortgage costs on a game system or living expenses for any games within it. If I buy a console and it is in my home, it should belong to me, and that is all there is to it.
X-One requires Kinect to always be on to play the system. This has nothing to do with necessity and everything to do with Microsoft's greed as they saw it as an easy way to force people to shell out another $100 for the peripheral whether they want it or not. You must be out of your damn mind if you think I'll pay you $100+ more for a piece of buggy motion capture that I do not ever intend on using.
X-One required a check on the internet every 24 hours, lest you be unable to do virtually anything on the X-One. That is not only stupid, it's totally confusing as to who the hell would come up with that and why.
All of the backtracking Microsoft did with the console in the past few weeks has nothing to do with them caring about their consumers and everything to do with the fact that they realized their own idiocy and lack of knowledge of their main selling demographic was going to cost them large amounts of money in losses of console sales, which even now it still will.
All of that "all-digital" download stuff requires an extreme amount of memory to actually have those games on your system. I can guarantee the system will sell with a low-gig HD, basically forcing anyone who wants to have more than a handful of games downloaded to play at any given time to buy another one, or have to constantly keep re-downloading games when they feel like playing them, a chore that can take hours or more. I recall that installing all of Fallout 3 took my system quite some time.
So, that's why, OP. That is why there is so much hate for this glorified television and sub-par PC. I don't care about watching sports in between people screaming the word "******" on Call of Duty. I have a perfectly working PC right now that is more useful than the X-One will ever be to me. I also am not so lazy as to consider the fact that I could do everything on the system "without a remote".
PS4 comes with better hardware for a cheaper cost and none of the terrible DRM.