This definitely isn't true, he must have been just testing the water.
The only way to do it would be to have the console connect via 4g so that if your local internet goes down then you connect to a mobile network, but then the cost of this would be much higher as well.
When I moved home it took them 3 months to install my phone line so I could get internet. So during that time I played a lot of my single player xbox content.
Always on would mean you can't take an xbox with you if you are going to a friends house or work or a hotel that doesn't have internet.
And even the other day my internet was terrible and kept signing me out of xbox live and when I could connect the games were insanely laggy. The infrastructure just isn't good enough here yet. And even if it was this isn't a good idea.
Yeah, i'm tempted to move off xbox when the new consoles come out. It's only really Halo that I got the 360 for and now that's a bit pants / samey the new playstation could be a better vote.
I'm also surprised about netflix, etc when iplayer is free. Perhaps this part of the model will change.
And it is a joke about the multiplayer in Halo 4, that shouldn't be allowed. And for xbox live only games that you have paid for they are useless if your subscription lapses.
I doubt they will stop charging for it if they can get away with it at present.
Perhaps if playstation remains free they may reduce the charge and increase the number of adverts.
If only valve would make a console! (although that would just have to update every time you launched it so might be a pain).
Hopefully they will have a think after this article!
inspectercoley's comments