... but I don't understand all of these games shipping that need critical updates because they don't even function properly without them.
Well, you're in luck, because I sort of have an answer!
I'm taking a class on ethics in games, and one of our teachers (I'll call him that, since He's technically not a Professor) is Brett Douville, one of the Lead Programmers for Skyrim. Although I tried to avoid it, I just had to ask him how it is that games like Skyrim can be shipped, when there are very obvious things wrong with the game.
In so many words, He said that it comes as a result of limited marketing timelines; as I understand it (and perhaps I'm misunderstanding him), He explained that a lot of money is spent on advertising, and a lot of planning put into the game's release date. Pushing those things back can be costly. Additionally, a game only has to have a certain amount of functionality in order to pass both Microsoft and Sony's standards for game publishing. These companies set standards at a certain standard, because if Microsoft (for instance) sets the bar high, and (for example) Skyrim doesn't meet it's standards... guess whose console gets it on launch day? And guess what console consumers will have to buy it for until it catches up to Microsoft's standards?
Combine those two, along with the ability to update games post-release, and that's one reason why we see games (with obvious flaws) being released. Announcing release dates, then holding off the game, is costly for the company; it's cheaper and more convenient to send out post-launch updates.
I don't mind having to update my games. My concern with it is that, down the road when a console
can't update, you're going to have a lot of 'great' games that are actually trash, and normal games that may have game-breaking bugs.