I think Microsoft did a terrible job of communicating WHY the DRM was needed. Sony ended up pouncing on them hard because of it. Had they not botched their message, things might be different.
I'm not a fan - but I mean, Steam/PC has similar policies and everyone accepts them. Valve's done a far better job of building up consumer goodwill, though, that's mostly why.
It will be interesting if either platform holder attempts similar policies next generation (assuming there is one and everything doesn't converge into PCs). As more people become attached to PSN/XBL, it's going to be easier for them to force an always-online, always connected platform. I don't think we're there quite yet in terms of online penetration on the consoles, which is another reason why Microsoft's attempt failed.