The all digital design would certainly prevent me from buying an updated model, which is unfortunate since I do appreciate the backwards compatibility.
It's a cynical move to get all game purchases done through their storefront and eliminate game reselling, and it will lock out a lot of price-conscious consumers who need to wait for a good sale, or buy used games.
On top of that, it's a huge blow towards game preservation, since the logical next step would be to stop producing physical games. Even other publishers might think twice before producing a physical game if only a third of the base can even use disks.
Often people bring up that games can ship incomplete and need updates; but even a non-updated game is still more playable than a digital one when the servers aren't maintained, and there's no reason to remove the disk drive. You can still play digital games on a console with a disk drive.
All in all, this is a pretty disappointing update for me.