I'm geniunly surprised too, but not for the reasons you stated. I can totally understand why Microsoft was so pressured by the crowd that cares about E3.
That is the crowd that buys the most games on their system, that is the crowd that goes for the long term, buys into Xbox Live and supports the company through various methods. That is the crowd that recommends the console and games they enjoy to people they know who aren't as knowledgable as they are with video games. They are a vocal minority, yes, but they're the ones who are willing to give Microsoft a lot of their money who were about to jump ship to Sony. They are the people who were advising their friends and family NOT to buy Xbox One, hell, I even did that with my nephew a day or two after the Microsoft conference.
And no, the masses of casual gamers out there aren't the driving force of the industry, they may be the majority, but they're not the ones who constantly spend their money on video games. Just look at Nintendo with Wii, they had the mass casual audience, sold the most units of their home console, but in the end Wii is a hollow shell with f*** all games because most people bought a Wii and stuck it out with Wii Sports, a packaged game. Sony and Microsoft were the real winners because they were able to gather up the audience, that vocal minority that spoke up about Xbox One's asshattery. They were able to please this audience by giving them exactly what they wanted and they made a tonne of money out of them.
So yeah, I can understand exactly why Microsoft changed their mind and reversed these decisions... the thing that surprises me is the fact that they actually DID. It looked as if they were going to stubbornly hold onto their hardline DRM approach despite what anyone said... but they didn't. And that is bloody amazing.