I've been using the phone for a few days now and I don't mind the orientation not changing when the keyboard comes out or the phone is rotated. I have the evo now and lock the orientation to portrait anyway. The only real gripe I have about it not changing is in market search.... I'm not sure it's a design flaw (other than market) but I think the phone flows better and works better in portrait mode. Overall, I'm really liking this device. Having used Android for the past year, I'll miss some customization options and apps, but XBox live and Netflix is awesome!!!
You are correct regarding the XBox Live and Netflix experiences. My favorite WP7 is actually the wonderful Zune interactive software . Zune is the finest multimedia management system I have used. Its rock solid and far more entertaining than iTunes, although glaring WP7 shortcomings like the lack of a File Browser do tax my patience.