The telescoping ammo component and the LSAT are great ideas, because they are going after a real goal of providing the same level of firepower in less weight. That is something tangible for the grunts. That component of the program is worth the money IMHO.
I do have my doubt about putting 40mm on top of a rifle. There have been over 15 years of study on this topic, every weapon of this kind end up with smart fused 25mm or less, even the Chinese goes down to 20mm bolt action. If this is not a smart fused 40mm, we are merely playing with ergonomic here.
Part of the question here is doctrinal as well. Do you want a rifle man with a GL or a grenadier in the section? The XM25 implicitly admits the guy with the launcher should be a full time grenadier. Is there a doctrine as to how and when to employ the grenadiers within the section? If we want a rifleman with a GL, the rifleman is using the rifle as a main weapon. If we want a grenadier, the launcher should be treated as the primary. What we have right now with this weapon seems to be indicating that we don't want to make that decision because either we don't know the answer or the answer is going to be different in various scenarios.
Unfortunately, if we don't admit the dilemma here, we will be getting solutions that are overly general, but not the best in efficiencies.