Have you not been looking at the comments on the reports on the tech websites - practically every other comment is now asking to remove Kinect and drop the price - Even Xbox360 magazines twitter account has been going on about that all morning - saying its the best option to offer two versions and lower the price to compete with Sony.
MS have given in once - how long before they take heed of the new round of whining b*tches and give in again and remove the Kinect. 2 weeks? A month? - Can guarantee that's what's next.
Nah, I don't think they will do this again. Kinect is way too baked-in in the system I think. I'm already surprised they think they have enough time to change the whole DRM-stuff with the few months until november. It's just practically impossible to change things like the Kinect integration at this point.