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leo-j said:
Oh I see, thats a nice feature, but doesnt little big planet do the same thing for free?

No, because:

a) LBP isn't free, you have to pay 60 bucks for it.

b) XNA offers standalone games, not levels for a game you already have.

XNA launched with the release of NXE, and while the majority of games are probably utter shit, there may be one or two worth paying for.  I believe the prices are at most a couple of dollars.