Again: Popularity does not mean the product is any good or the best product.
You said:
If the majority of people like it than Microsoft must be doing something right with it.
A lot of people bought VHS video recorders and eventually killed off the Beta video recorder. Beta was the better product, but the reason people bought VHS was because it was cheaper and “good enough”.
A lot of people use Windoze, but a large proportion of them do so because they don’t know that there is another choice, or because they’ve been told (often by an IT “expert") that they must use it to be comatible with everyone else, or because Macs are just for graphics, or numerous other ridiculous reasons ... and one of those reasons is again because Windoze computers are cheaper.
The main reason the Xbox 360 is currently so popular is simply because it’s the first, and being first doesn’t make something any good or the best product either.

