The "always on" thing pisses people off because it's taking choice away from the consumer.
"I bought my xbox. It's mine. I can do with it what I want to because I'm free, it's my property, and it's my decision."
Always on says, "Nope, you don't get to play your xbox you paid 300-500 dollars for unless we say so! Btw, you can't go over to a friends house and pop in your game and play there. Have a nice day, because we already have your credit card information."