Why nasty? That implies malice. Are you saying that MS took the conscious decision to be spiteful? This is the point of view that I have trouble understanding. They didn't do the deal to make peoples life miserable. That may have been a result for some, but they made the deal to sell consoles not to spitefully attack people.
Unfortunately CD may not have much say in the matter as SE are the distributor and make the deals. As I have said, regardless of the concerns voiced if it's sales meet expectations from the deal there is a good possibility they will do it again.