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Adjudicator said:
So basically what I'm getting here is it's okay if I want to play online with my friends for free, but if I want to play online and talk to them and invite them to games and easily find them in any game and things of the sort I have to pay.
That makes perfect sense but it isn't like that on X360.

It is like that on the 360 though. Have you ever used one? Cross-game chat means I can talk to friends no matter what they're doing, even multiple friends at the same time who are all playing different games if I want to. I can invite anyone to any game and I can join a person in a game if they're in a joinable position. I can see what games my friends are playing and what exactly they're doing in that game, and it will say on their gamercard if they're joinable. It does make me wonder if the people criticising Live have actually used it, or if they're assuming it's just a version of PSN that costs money. It's not, otherwise I wouldn't pay.