Other than the obligatory- "they're headed straight for 3rd party publisher territory"…
I think their hardware will follow a similar trajectory to the surface line- will always be excellently built, but will never be widely adopted.
My guess is Phil genuinely is a good guy that has good intentions but he'll eventually move on (as opposed to being removed) and MS will never even attempt to be the "good guys" in gaming ever again.
They will eventually produce excellent "revival" type game releases for some of their most beloved IP but they will of course not have the impact they wouldve had if they'd released over the last 10 years.
And perhaps most controversial- the whole mantra/vision/strategy of "games for everyone, anywhere you wanna play, unified, consistent across every device ever" will never be fully realized. Which sucks for them but more so sucks for gamers cuz it'd be great. They will eventually settle into being just a regular third party publisher, albeit the biggest and most lucrative ever. Although there will be some signs of this philosophy over time, it'll never be meaningfully impactful or apparent in the way they'd hoped.