I don't see MS removing the DRM feature either, but I do see them sugar coating it and explaning consolations at E3 to smooth it over.
They could go either way on the always online thing. It's a feature that isn't necessary at all, even on their end, so I could see them dropping it. But they might just be stubborn.
As far as games, well, I'm hoping for more new IP's and less sequels, which we might get because 1. This is the start of the new console generation, and 2. I feel like sequel fatigue has settled in quite a bit. From what I've seen, a lot of sequel games didn't sell as well last year as publishers were hoping (sans the obligatory CoD release), so I think that's a message to publishers and developers that they need to step it up.
Hoping to hear on:
Bioshock Infinite DLC
Some sort of Battlefront 3 teaser
Pokemon X/Y (Which I guess won't technically be at E3, but the ND should still count)
New multi-plat titles
I'm not as interested in Sony or Microsoft as I should be (since I don't plan on getting Xbone or PS4 for a year or two) but those conferences should be exciting all the same.
If it's only temporary, I'll just wait for DAIII to be on the PS4. Xbox One will have some awesome exclusives to show off, I'm sure, but no matter how tempting they look, I still don't think I'll go buy a One due to the flaws that were brought up at the reveal. If they want me and others back, they have to remove the Used Game DRM, let us play offline should we ever take our console somewhere that doesn't have internet or if we somehow lose connection at our homes, and let us turn the Kinect off whenever we don't need it.