One of the reasons that Microsoft has been able to break into the video game business is because they've done a good job sleeping with developers. Not literally of course, but they've gone out of their way to help dev shops make the most of the hardware and get their stuff out there. That's why there are so many great games out there.
So now they've announced a development tool for the masses so anyone can develop for the console. This is a fabulous idea... except for the price. Why would you do something so brilliant to foster indie-style software development and then charge them for it.
Come on guys... the Xbox group is the one part of the company that gets it. Don't do something stupid like this.