My exact reaction. This is as close to confirmation as we're going to get until Microsoft make any official announcements about this topic (and I hope it's denied) but if this is the case they've pretty much removed the console as an option for me. While I do have an internet conenction in my house, the it is so tempermental and prone to disconnections, the effects worsened by my reliance upon WiFi as opposed to wired connections, that I simply wouldn't be able to use the console with any regularity. I hate both the concept of blocking used games and an internet requirement but, whereas I could, theoretically, begrudgingly accept the former if the rest of the console was good enough (but in most likelihood I probably would buy a competitor), the latter completely removes my ability to use it with any consistency. I really do hope Microsoft deny it as, if not, it simply won't be an option for me next generation (or at least for the first few years), regardless of the quality of everything else.
As has been suggested, I don't know why he thought commenting on this in the manner he has would be a good idea. It seems like it was an attempt to mitigate the criticism that people had been directing towards the idea (on forums anyway, I've not seen a mention of Microsoft's next console elsewhere so I've no idea how this would be received but, I have to imagine, it would not be received well) but his poorly thought out analogies have resulted in a complete backfire and given off an air of smugness and arrogance, particularly "Why on earth would I live there". The best thing he can do now would be to stop typing on the topic. EDIT: Also, I know it's been suggested that perhaps he doesn't know about the next Xbox and that could be the case but given his position he shouldn't really be commenting regardless of whether or not he knows (and with his position I find it hard to believe he doesn't), it just isn't a good idea. I do agree it's not definitive confirmation, but I do think it gives the most precedence to the rumours, solely due to his position, and that's why he shouldn't have commented in the first place.
EDIT:
...why would this even be a thing
bad pr move
This is what I'm curious about. The only 'benefit' (it's not a benefit for consumers unfortunatly) I can see to an always online requirement is to block used games and in an effort to prevent piracy. I cannot really consider any other option/feature that would, if Kotaku is to be believed, require a constant internet connection, opening the troubleshooter after three minutes of disconnected playtime. I'm definitely interested (although it's more of a nervous anticipation) in seeing what exactly Microsoft announce and how they do it because if the backlash on NeoGAF of this requirement is demonstrative of how it will be received elsewhere then it's going to be a very tough sell and the 'feature' that requires it (if there is an actual feature and it's not just the previously stated 'benefits') will have to be exceptionally good.