I really wouldn't mind paying for online gaming if they provided an awesome service with fast dedicated servers near my location. It probably still wouldn't be as good as PC online due to low customization (can't play fan-made maps, etc), but at least I would feel that they're spending my money to improve my experience.
But paying MS just for the privilege of being able to host games on my connection or connecting to another gamer's 360 as the server, that just feels like being ripped off. It's not just a matter of principle, actually, as this has obvious implications on performance and online capabilities.
For example, I can play with 32 players on TF2 on the PC... on the 360, you play with 16 players if you're lucky (or so I hear).
My Mario Kart Wii friend code: 2707-1866-0957
