Let's consider how LIVE reduces cheaters. Now, in an open system, it's up the system to weed out cheaters...how are you going to keep track of all modified boxes (banned boxes)? So some central server is needed...who is going to pay for that? Granted LIVE doesn't elminated cheaters, but it greatly reduced it. How much is that worth? A lot of hardcore PC gamers play on dedicated servers to they avoid cheaters and have a ranking system, however it's not free.
Granted, some of you may think LIVE isn't worth the money, but to say an open system is better have yet argue why it is better. Maybe, what a lot of you meant, LIVE isn't worth the money...? If that's the case, I would to agree for the current version of LIVE. But let's hope LIVE will continue to improve by adding more value for the money.
Additional features I would love LIVE Gold to have:
1) ability to save my game online instead on my console
2) Video streaming of game highlight from tournaments
LIVE Silver features I would love to see:
1) game library/catalog - ability for me to catalog my games, rate it and review. And have the ratings/reviews reflected in a global game rating so other gamers who are interested in buying the game can review the game. Like how Blockbuster online rating works.
2) intergate with online game rentals...So people don't need to fire up their computer to manage their queue.
3) Buying Music / TV episodes (sort like video ipod)