Always online is a bad thing because not everyone has a strong Internet connection, even in the US. That means, there's an entire group of people who flat-out can't play the console.
Always online with Kinect required is simply really creepy. I don't know about you, but I certainly don't like the idea of a camera potentially broadcasting my entire living room to the interwebz. Will anyone spy on me? Not terribly likely. Can they? Yeah, probably. It's far more likely with a camera directed into my living space than without. I'm sure there are security measures, but I don't like that a requirement to have a camera coupled with a persistent internet connection exists on the console therefore I would just avoid the console. I'll just stick with my Wii U that doesn't require a camera and internet conmection (it only has a really poor quality camera on the controller that needs to be pointed at things to be effective). While not exactly the same thing, it reminds me of Robbins vs Lower Merion School district. Am I being paranoid? Sure, but I don't think you can ever be too careful with your privacy.