I can't believe that they are still today peoples using the "if we get rid of used games/piracy/etc... prices will go down
" silly argument.
The only time the industry managed, at least for some time to nearly get rid of piracy, not only the prices didn't go down but they even increase significantly.
Can you explain what you're talking about? Because the PC industry pretty much eliminated used sales and piracy also got reduced, and the prices are rock bottom (that's part of the reason there's less piracy).
That's the model Microsoft was aiming for, but with a an added benefit of allow used games sales, something that's not possible even in supposedly enlightened parts of the PC universe, such as GOG.
A lot of people already thought that the next console gen will be the last, and Microsoft was hoping that using a model that's closer to PC and mobiles, which are growing markets, would help reinvigorate the console.