To me, the only misstep was the lack of an offline mode like Steam offers.
I had the sense that this was what equally enraged the public. They also backed off the online requirement, which was just stupid to begin with.
I think the reason people are fine with Steam is that Steam makes it so easy, and they don't tie it to a single device. I can install Steam on any of the computers I have, and as long as I only use one at a time I can play my games on any of them. It's as portable as a DRM solution like this has been. It doesn't sound like the XB One will be as friendly...