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S.T.A.G.E -
Actually PSN currently edges out live. Your right about one thing, PSN, at least where it is today, would not exist if live didn't come before it. But this can't be used as a means to argue that live is always better and will be forever. You say if live never existed "Sony wouldn't ever get it" as if it's a fact. While I respect MS and they have been a great influence in the console business, especially in providing online services, I completely disagree with you. This industry has benifitted from Sony just as much as MS. In retrospect, and judging by the way Nintendo and Sony have acted in the last two generations, If MS didn't do it, chances are thats Sony is probably the one who would have. This is obviously my opinnion, but Live doesn't currently offer anything over PSN to justify me paying a yearly fee for it. The reason I mention games is because I think that games, both in variety and quality, play an important role in the online service of a video game console. If I were to pay for live, I'd be interested in playing games like Gears, RE5, GTA, and Halo. I wouldn't spend my time in 1 vs. 100 (something I can do on the iPhone and it's lame even on a phone), or making special avatars for rock band, and I definitly wouldn't be on Twitter or facebook (phones and PS3 browser can do this too). This is why i brought games into the thread. Were sitting here arguing about little details while i think games should be the focus. I spend 98% of the time im on my consoles in-game. Now, Half of the games I listed have home spaces where players can interact, set up matches and compare stats. They can also participate in mini-games. Thats all fun and dandy from the prespective of creating an online service that brings ps users together online. But like i said, i dont really see all these small details as a big deal. What i do like is having a variety of games that i can play online with my buddies and enjoy it. I also like when you see games like killzone 2 and MGS4 that have levels, costumes and designs in little big planet. Then you see sackboy in hot shots golf. The kind of cross game, online functions that games like LBP has and Mod Nation Racers is bringing doesnt exist on Live yet (i may stand to be correctef here but tell me if im wrong). Also, games like warhawk are constantly being refined and even now, two years after release, the inclusion if the drop ship, jetpack and portable spawn tank keep the game miles ahead of games like battlefield. Resistance let 60 people play in an online FPS And had 8 player coop campaign mode. Killzone 2 online I don't even have to explain but it is like a modified futuristic version of modern warfare with amazing chat and squad options. As far as racers go, you obviously have your burnout and yearly dose of nfs, but there are also unparalleled games like wipeout, pacific rift and gt5. 

The only advantage Live can give me is games. There is a good chance I'll sign up again for a month ir two when the next massive online game like odst hits. Untill then, PSN has a clear edge.