This thread wouldn't feel right without me hehe. I waited for it since the MDX days, nothing happened. I did not stick around for XNA and went back to native code. You see, the more abstractions with managed code, the more runtimes. They can't make it easier. It's just something one has to accept. All they can do is make a installer that downloads the runtimes for the consumer, and don't forget if they have SP2 or not. Now what? Another download?
It may be great for the developer but it will hurt later when they are ready to sell their product, or even release a trial! You give a trial or demo but it requires so many additional downloads. Chances are someone else bought the next demo on the list because they got to try it out in less time. You loose a sale. Customers are very impatient. Go to any grocery store and see potential buyers have a fit after three minutes in line. They will start looking at the next line to see if it is shorter. Use XNA if you don't rely on sales, or just make sure you have really damn good game or trial/demo that can make up the download time.
Worst case senario:
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XNA Runtime: 1.9mb
DirectX Runtime: 44.0mb
.NET Framework 2.0: 22.4mb
WinXP SP2: 266.0 MB
That's what you get for giving into the whole developer productivty advertisement campaign :) Most indie folks use C++/DX7/DX8. There's also OpenGL which is already installed on the computer. XNA is really a homebrew kit in order to be the first homebrewing kit this console generation. Remember the PS3 did scare Microsoft. If it didn't, they wouldn't have started saying their own homebrew product on the PS1 was not comparable. It's a campaign and they don't give a damn about independent developers and their troubles, to begin with. It's the big companies. When they demand better runtimes, then you'll see Microsoft do something.
Look above you, it reads "XNA Creators Club." Nothing else.
Anyway, I dealt with this for some years and have not seen much done with distribution on the PC. I looked for other solutions because Microsoft wasn't doing much about the issue. They knew about it, but they can't do much with managed code. Each runtime relies on the other. The good news is there are other "clubs" out there and you just have to find the one that fits your products.