For the money I pay, XBox Live is little more than a Gamespy/Fileplanet video and game demo download service + matching service. The service has so much potential not being used. Why no iTunes equivalent? Why can't I buy movies/tv shows for download? No web browser!? Why can't I get email and RSS feeds so I can view them while I wait for a match to start?
The hype of XBlive seems far above what the service actually does right now. I pay for multiplayer access to non-MMORPG games that would be free on the PC. It costs money to download levels, backgrounds, et al, whereas on the PC, I pay nothing for this service most of the time and there are large homebrew communities around many games.
If Sony would merely enable homebrew level/content development support for most games, it would be best thing for endusers.