Your initial statement is an absolutely absurd falsehood. You're off to a great start.

: After all, why
: spend $500 on a fancy set-top box ( not a cable box) that requires an
: additional $60/year fee to use these features when there are cheaper, more
: readily available alternatives?

Because you're not buying any single feature, nor are you buying a bundle of features. You're buying experiences.

: Nobody bought a 360 just to do streaming
: video and social networking, and nobody will buy an XBO just to watch
: football, chat on Skype, and do fantasy football. No, the XBO will only
: sell to people who are interested in games.

You say that, but I believe you to be incorrect. I believe people who have little to no interest in games will in fact buy one of these.

: Even people who both play
: video games and are in to football will most likely not be swayed by this
: ad. It will come down to the games.

For some people, the non-gaming features will be very compelling factors in deciding. For others, those bonuses will factor far less than the exclusive titles. You can't assume others think like you (or even most people - if anything, you've demonstrated repeatedly that you're a minority).

: This was a bad choice for a first ad,
: even if it did air during a football game. MS needs to focus on games,
: games, games.

Wrong, wrong, wrong (c.f. Nintendo).