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It all depends on your usage of Live.

If the 360 is you primary platform and you play online a lot, $50 is not a big deal.

If the 360 is a secondary or 3rd console, or you occasionally want to play online with friends, you are not getting the same value as the hardcore 360 player.

It makes total sense that you, the hardcore 360 user, does not care about the fee, but realize that people who only play the 360 online occasionally will not get the same value out of it for the same price you are paying.