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Well, first off is the fact that it's internet required. While it doesn't need to be always on, you still need a connection, having to check in once every 24 hours or something like that. Fortunately, my internet is rarely out for that long, but it has happened before, and I don't like the idea of my system potentially becoming a brick just because Comcast couldn't get their shit in gear.
Also, while they're technically not blocking used games, they're making used games obsolete. According to this interview Kotaku had with MS's Phil Harrison, if you buy used you'll have to pay a fee, which is apparently full MSRP. If this does end up being the case, well, that's a deal-breaker for me. I could do $5, maybe even $10 if my used copy was cheap enough, but full MSRP? Fuck that shit.