The thread title is flamebait and misleading.
It makes it seems as if the biggest flaw of Xbox Live is because LBP is a game that could not go on the service. Last time 360 fans checked, we are very happy with it tyvm. And anyhow, LBP is a RETAIL game, not a downloadable game.
Of course there are XBL restrictions. There are also PSN restrictions (need I remind you about the MGO, firmware disasters?).
And yea I have seen LBP previews and they look great but you must admit its jumping the gun too much to say its going to be a breakaway phenomenon that will warrant saying every other online service needs to accomodate LBP. (which is what I get from the title)