While I still think the Xbox 360 is a great game system, I think there could be improvements to it. These are all things that would make usability improved and could be changed just by downloading an update online (or however else they want to do it). MS has improved the UI and added features through Xbox Live on the old Xbox, so it's not much of a stretch. This list runs from small annoyances to minor gripes about how they implemented a certain aspect.
Well, here goes:
Media Playback
* When a game takes control back over the game, the music you are playing stops, then restarts at beginning of track, it should pause, then resume exactly where it left off (though at least it saves your playlist and resumes playing at the beginning of that track)
* More Codec Support (streaming from PC, reading off removable media and USB storage)
* APE/FLAC, etc audio support (at least support the GNU/Open Source ones; I don't expect you to support the commercial codecs; you could make the commercial codecs premium content)
* XVID, AVI, etc video support (")
* Better/more controls for movie and DVD playback (fast forward, rewind, skip frame)
* scrolling titles in music and marketplace content in menu
* When playing music that the Xbox 360 has generated as a "playlist", you should be able to see the playlist and switch to tracks you want instead of only being able to skip one track at a time
* Music playing in the Xbox 360 should keep playing or pause like it should when a game takes control back, and resume when you change games in XLA
* Media streaming from SAMBA shares: why with all the talk of wanting to connect to everything, did you not support allow networking to work without using WMC (thereby excriminating against Linux, etc users). I was VERY unhappy when I tried to install it on XP x64 until I found a workaround for it.
* Movie playback without MCE: I think the MCE interface is very appealing and that should be added value when playing back media on your Xbox 360, but it shouldn't be a requirement (I understand about all of the extra stuff like playing back DVR content; that would also be added value for MCE users). $400 dollars for a console is not cheap and for people that don't have MCE, seeing that as being a prerequisite instead of an enhancement for movie playback, just looks like you are purposefully trying to cripple the 360 just to make more MCE sales.
Menu Enhancements
* Remember position in current playlist when exiting out to the menu for trailers, more sorting options (date downloaded, alphabetic, length, etc..)
* When in submenus on blades, there needs to be a way to exit back out to the main menu with one button press (just like the Guide button does when pressing it after hitting it)
Xbox Live Enhancements
* Why does your achievements only give the date when you are signed into Xbox Live?
* Disconnecting from Xbox Live when playing Condemned, for example, makes you return to the menu screen (VERY FRUSTRATING! when you have to play over from the last checkpoint)
* Single listing for trailers (have submenus to download them in 720p and 480p instead)
* Single listing for Xbox Live Arcade games (not one for both the trial and full version
* Single listing for trailers (some trailers are listed both in the "Xbox 360 Dashboard" and "Digital Entertainment" sections)
* Items listed as new in the Marketplace should be based on if you've viewed them (I'm not sure if it does this already or if by how long it has been up there)
* Make downloading content (trailers, games, demos, etc...) a background process (w/ queueing possibly)
General Enhancements
* Online save storage: I took a survey where you mentioned this. Is that going to be the only way to transport saves from your Xbox to the 360? What about the people who don't have Xbox Live? Backwards compatability isn't much fun when you have to start over from scratch. :(
* Having a setting to stop the auto loading of games (both at startup and just closing the tray with a game inside), though I think it should be default to auto-load. There could also be seperate settings to auto-load based on media type: data, DVD-movie, audio CD, game, etc...
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