As an Xbox gamer, I fully support PS+.
This is because MS might see the potential in actually providing more game related content than useless apps. Not that they dont provide any, in fact I think they have provided the best games online-wise. But more will not hurt either.
And no. Xbox Live grew 15% YOY in active users. I don think thats failing at all. Plus Xbox Live broke its record this year with the most Subscribers active in a week than any other week in XBL history. It broke its arcade selling record TWICE for the fastestselling arcade game. With the release of Trials Evolution and Minceraft XBLA. And it also broke the record for the highest amount of downloads of a downloadable paid game. And from the looksof it, it will MC XBLA will break the most downloaded game in XBLArcade's history.
I dont think thats failing.
Yay!!!