The internet goes out which means you can't use it.
You bring your Xbox over to your friends house or to some location that doesn't have internet. Which means you can't use it.
You bring your Xbox to a location that has internet, but there's no Wifi or a spot you can hock it up to the internet. Which means you can't use it.
What are the benefits of having an always online console? There's no benefits at all to it.
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I believe that the statistical data received by the developers would prove useful.