If they take out the difficulty and therefore the commitment the player had to have with the game, they'll ruin it.
That's what it's all about.

Do I see alot of jaggies in the man's arm in 2:38 or is my eye playing tricks on me?

I hope it's just an impression because of the 720p max resolution of the video. Really, the next gen shouldn't tolerate this kind of artifact anymore.

This always online stuff is unthinkable at any case.
You buy a videogame and you depend on a 3rd party service to operate it?
One thing has nothing to do with the other... May have its uses, of course, but not in a million years they justify putting the minimum operating conditions of the system on the way.