For what XBL already does and what it promises to do in the future, it's simply better. In general, it has more content and better implementation into game titles. The Netflix deal is going to be huge and may finally prompt me to join Netflix.
If you're going to use "screaming kids" as a reason to hate Xbox Live, then I simply don't consider your opinion to be reliable. All the console networks have screaming kids on them. You know what I do to combat that issue? I form teams only with my friends. That way I don't have to listen to it. I play BF:BC online almost strictly in squads consisting only of my friends. I approach Freeburn mode on Burnout Paradise the same way.
And finally, I don't get the "lag" comments about the blades. I think the interface is pretty responsive most of the time unless I'm getting lag from my internet connection which is sometimes a little spotty. And if you have trouble figuring out the organization of the blade system on Live, you're probably either younger than 8 or older than 80. Honestly, is it that hard to figure out? The answer is no.
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