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kjj4t9rdad said:
It really comes down to one thing, if you want to chat with friends and use your console as a social networking tool LIVE is better, however, if you actually want to play games PSN is better. Untill LIVE uttillises dedicated servers like Sony does, it will always be inferior IMO. Peer to Peer connections are terrible compared to dedicated servers.

That is up to the developers.  If developers want to carry the cost of dedicated servers, nothing is stopping them.