You... did read the bit about the cloud-hybrid tenth-gen console, right?
MS wants you to buy revokable licences, not games. That's what the XB1 was about before everyone hated it, and that's what the dropping of physical drives - from XSS, to XSX Brooklin, to Xbox 2028 - is about.
Again, I don't know why you're framing any of this as "surprise". This is what we all saw coming back in 2013.
Cloud-hybrid does not mean online-only; it means that the console will be designed to use cloud services in certain games to enhance the games experience. That does not mean that every game will require cloud services and be online-only. It also doesn't mean that every game with cloud enhancement services will require online-connection to play but might just miss features or be of lower quality without the internet connection.
For instance, Flight Simulator is a cloud-hybrid title that is available right now. You do not require an internet connection to play Flight Simulator but having an internet connection and using the cloud services can greatly enhance the quality of the environment from streamed data and allow you to have real-time weather and even air traffic.
A cloud-hybrid console could mean hardware that is more directly designed to reduce latency and bottlenecks for the CPU and GPU to access data directly from the Xbox cloud. It could mean built-in hardware dedicated to decompress data packets and AI hardware to reconstruct data received from the Xbox cloud.
All EULAs, including game discs, are revokable licenses.
This is true on Steam, Epic Game Store, EA Origin, Nintendo, Sony, Android, iOS, and more.
Sony, Nintendo, Microsoft, Epic, and Steam all want you to buy digitally (revokable licenses).
When you buy a game disc, you are buying a license to play your copy of a game and a copy of said game disc.
In 2013? You keep going on about Don Mattrick; I saw this coming when Steam took off. PC gaming is 98% digital at this point and console is following PCs footsteps.
"Unauthorized copying, reverse engineering, transmission, public performance, rental, pay for play, or circumvention of copy protection is strictly prohibited."
You legally cannot even play a game disc you own for public performance or rent it to a friend; so much for owning it.