Yeah, there's no way that could work in a million years. Microsoft should be chopping the legs off of the Xbox brand with that strategy, as they both admitted a console with a lot of leftover stock is crap and punished the hell out of a bunch of customers at the same time. Ignore the whole "there's something better, guys," part--how in the world would the fan base react when they realized that their $500 console had a 2-year shelf life because developers started overshooting the Xbox One's hardware because there was a better system? They'd burn Redmond to the ground.
This has been brought up before, but I don't know if it was on this forum or another. Back then, I said the same thing: The only way Microsoft could ever, ever, EVER consider such an act in a million years is if they gave away free/near-free upgrades for all existing customers, which could happen in two different ways:
1. Take back all of the Xbox Ones, scrap them, and send out the first several batches of new consoles to previous customers for free, meaning the R&D and parts for the generation just doubled, and half of the income was never going to be seen.
2. Make the "new Xbox One" the same as the old one, but with newer parts. Then, they could avoid a new chassis design and a full hardware swap (maybe just the RAM and SoC?), and give all existing Bowners a free upgrade to the new stuff (which would be expensive, but still cheaper than the first option).
Microsoft would eat a crapload of money doing such a thing, while simultaneously pissing off millions. They would almost certainly kill off the brand internally (you know the shareholders would lose their minds if they heard Microsoft had to eat $100 per-console for the upgrades), and all of that "always-online spybot with bad parts" E3 media hell would look like a showering of praises by comparison.