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I don't see why publishers wouldn't use their own dedicated servers. Who is Microsoft advertising this to? Unless the servers are dirt cheap- if a big company, like activision, wanted dedicated servers- wouldn't they just invest in their own. EA already has their own servers- I don't see why they would pay Microsoft to use theirs. Are they advertising it to the smaller titles on XBLA- because as far as I know those still need a publisher that would have their own servers. And maybe I'm wrong, but wouldn't it be in the company's best interest to get their own?

Who is going to make use of these 300k servers? (I'm legitimately curious- not trying to downplay what could be an impressive feature).