I used to work at Best Buy at the Geek Squad, though this was before they did these console firmware upgrades. Anyway, it's all about attaching services to the product so the store can make additional money. I'm about to sound kinda corporate, but that's the mindset they ingrained in me so bare with me people.
You, as the customer, can decide not to buy one of these "upgraded" consoles. If the store only has these "upgraded" consoles in stock, you can refuse the service and buy just the console (essentially getting the service for free.) If the store refuses to sell you just the console, call Best Buy Corporate (1-888-BESTBUY) and report the store for breaking SOP (Standard Operating Procedures.)
It's not that they're screwing their customers over, it's more they're trying to get the Geek Squad to generate more revenue. You only have to pay the Agent hourly, so anything they can do to earn revenue is basically 100% profit for the store. Compare this to, say, a laptop where they make maybe 5-15% on it (if it's not on sale.) Anyway, I don't hate Best Buy and I didn't mind working for them but some of the things they do are pretty stupid (like this thing.)