Nextbox

So there's a ton of new information leaking out about the successor to the Xbox 360. These are the things I hope the next Xbox improves upon, aside from the usual graphical upgrades and whatnot:

Blu-ray Drive
It's silly that something that's supposed to be the media center of the living room can't play the eminently rising home video format. As if that weren't enough, there are already games on the Xbox that take multiple DVD discs; clearly a storage upgrade is necessary.

Kinect
The Kinect sensor isn't sensitive enough. It's a cool idea, but it really needs more oomph behind its level of recognition before it can really be something incredible.

Smoother Interface
The most-used element of the 360's menu system is the guide menu. Unfortunately, the guide is a tad bit sluggish. It takes a second or two too long to bring up when pressed, and moving between sections of the menu (especially when dealing with friends lists and things of that nature) can vary in time taken. Since this is apparently mainly a hardware design issue, it can be solved with an upgrade. Essentially, it just needs to be snappier and less laggy.

Better Quality Hardware
The first 4 years of the 360's life cycle were plagued by the redring catastrophe, something no game system should ever have to deal with. It's totally unacceptable. Additionally, the system itself, apart from design flaws, was simply constructed out of cheap materials.
The controllers' D-pads barely work, and they can't seem to handle power consumption correctly. When a wireless 360 controller is below 1/3rd battery power, it will intermittently shut off for no reason, with no warning. It can easily be reconnected with no problem, but it takes several seconds. So, essentially, your controls just go dead for a long moment, and even afterward they're still in danger of doing so until you replace or recharge the batteries.
What's even more frustrating is that PS3 controllers, while inferior in design, are much better-made than the 360's. PS3 analog sticks and buttons are slightly more responsive and sensitive, and their battery usage is far, far better. PS3 controllers don't even come with an officially-made wired option; wireless is the standard. Futhermore, the system (A) gives you ample-yet-subtle warning when the batteries are getting low, and (B) keeps the controllers running until the last possible second, with no connection problems whatsoever.
So, overall, I just want a system that works and works well.