As a competitive gamer that put hundreds of hours in both Xbox and PC gaming, I think this joining of the two systems should not be happening. It will lead to negative consequences for both platforms because they target different groups of people.
People with an Xbox want pure simplicity in gaming. You put your game in, join with your friends, and play with an even playing field. PC is a completely different world. PC offers flexibility in the settings you play (resolution, FOV, framerate), the controls (controller, M&K, joystick), mods, dedicated servers, and more. The consoles will not be able to offer that therefore the only logical conclusion will be Microsoft locking PC games to console standards to keep an equal playing field. On the other hand, consoles (because of the locked down system) have negligible amount of cheaters on their system. Basically nonexistent. PC's Punkbuster and Valve's VAC do a decent job, but it's impossible for them to catch the huge number of cheaters that bypass those systems.
This is like Ubuntu and OSX trying to merge together. It just doesn't make any sense. The target audience is completely different and therefore the operating system revolve around that. You're going to anger both sides by trying to make compromises that people do not want.