Maybe since their Internet TV was not so successful (flop) , they wanted to see the response and then move forward. If that was the case, they should have released Xstream box with better hardware ie at least 3 gb ram and 32 gb internal storage and better chipset.
Buddy having advanced technology/features in box is not a constraint but making it happen at limited cost is the problem. Most people are not willing to dish out money for premium products. Let alone XStream box, even operators had to cut down on quality for regular SD or HD boxes bcoz of this reason.
It's funny though that later on subscribers have to get boxes replaced frequently thus eventually adding to expenses. For TV channels too people prefer minimal cost but end up paying more for products which advertise on these chs and add marketing cost to MRP. Atleast one should pay appropriate amount for news chs so that we get proper information/content there rather than what is being presented today