Remove internet requirement to play

You can even do a quick google search along the lines of "ps4 set up no internet" that will bring you to multiple sites letting you know that internet is not required for the initial set up.

You're correct. I don't believe my PS4 had a mandatory update, or my upgrade to the PS4 Pro. There's no technical reason why the Xbox One can't be made to 'just work' from power on. I'm not going to argue to the toss here, this clearly isn't very good
position for users who are lacking either a decent Internet connection, or indeed a connection at all.

I'm pretty sure the Switch doesn't need a mandatory update either. During set-up you are asked to connect to WiFi, but this can be skipped. I know, I have one of these too.

There is a question of whether this is due to anti-piracy, or the echo system MS originally sent up for the Xbox One. Which requires, for some undetermined reason, a new machine to be online and registered their end, even if it's only during the initial
set-up. You even need a Microsoft account just sign in, even if you have no intention of using it online. This isn't a requirement on PlayStation consoles.

Being new to the Xbox system, you may or may not remember that when Microsoft first announced the Xbox One, it was originally planned to be always online, there was even speculation that you wouldn't even be able to trade-in disc Xbox games. Microsoft made
a u-turn on this at launch, but the mandatory update and a Microsoft account remains unfortunately.

After the initial setup you can take the console offline and continue to play your disc games without a connection if you prefer. It is the initial setup that requires the connection.

I suggest avoiding this requirement on any future console you make

That's not going to happen.

The very reason the console needs an update is because without it, various pirating a modding communities would have a much easier time of getting Xbox consoles to run illegal pirated games. The same is true with PS4.

I understand having internet allows the full use of games and appliances but when you make it a requirement your pushing away consumers. The playstation as far as I remember can always be used even through set up with no internet. And no its not going
to make it easier for people to hack games, the hacked games come from pirate sites that allow you to download to disks or hardrives and are recognized on the console as a normal copy. What your thinking of is propbably people modding the consoles like they
did with the ps3, but that required the use of internet. I bought this brick to use while i move into my new place, and now i cant until i get internet. From my side of the issue there is no reason to continue with this series of consoles when i can just go
back to the ps4 that allows offline use. From a marketing standpoint this requirement is going to hold xbox below the playstations no matter how you want to look at it cause internet is not always readily available for all consumers

Unfortunately that is just how it works.