Too little, too late in my opinion. Microsoft has already proven that they are more than willing to screw customers over. It's only once they realized that customers aren't going to pay to be screwed over is when they backpedaled.
Never mind the fact that they changed their tune from "it's impossible to remove" to "ok we removed it" makes it entirely possible that they flip the switch back the other way once there are alot of Xbox 180's in homes a year or two down the line.
But my favorite thing has to be the tone of the announcement. Almost like "FINE, if you want to be a NEANDERTHAL and carry around your discs and lend/trade/rent/sell them like a PEASANT then fine, but you are KILLING all the cool INNOVATION we had planned for you"
I keep seeing people say "switch the DRM back on", but I'm having a hard time seeing them do that. If only because I doubt they'd get away with fucking people over like that.
Sony did do something slightly similar with the Other OS thing didn't they? Flipped a switch and it was no longer an option unless you never updated the system again (making playing online impossible). It doesn't sound that far-fetched for them to cry about piracy or some shit, or maybe even proclaim that to give users new awesome 'features' and announce "well, we need to turn the DRM back on". It might backfire spectacularly for them, and I sincerely hope it does, but they certainly seem capable to try, possibly banking on people being more accepting once they've sunk money into the thing. They we're willing enough to go through with it until now.
There's an added depth to that stupidity in that the people complaining about changing discs still have to option to buy games fucking digitally.
I think those people don't realise that the digital download section for Xbox isn't going anywhere. Either that or they know MS is a ripoff when to comes to digital download and they don't realise that they're only hurting themselves.