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The main reason:  It keeps Microsoft in business and stops them from bleeding money.  Plus, it was a charged service since the early 2000's so they just kept the same price.  Sony and Nintendo came and offered it for free but that's because they didn't think like the Joker from the last Batman movie (If you're good at something, never do it for free--Microsoft is good at killing Batman).  But you want a list so here you go:

  • Cross game chat: Talk to anybody no matter what they're playing
  • Advanced Netflix:  Watch a movie with your friend at the same time.  Their avatar will be sitting with yours (similar to the theater in Playstation home except without the sucking).
  • Better Matchmaking based on skill levels (True Skill)
  • Dedicated Community Events:  For example, Gaming With Fame, Ladies Night, Family Night, and dedicated game nights (Like Gears of War 2 All Night Long).
  • Demos for every single solitary Arcade game (not just random ones like on the PS3).
  • Tons and tons more content for downloading including exclusive FREE programs like "The Guild".
  • Music Videos
  • Dedicated Twitter App
  • Dedicated Facebook App
  • Dedicated Last FM App (I can't get it to work on the PS3--can you?)
  • IGN Strategy and help videos streaming instantly in the main menu
  • The ability to re-download purchased content like TV Shows (Did you know that if you delete a purchased movie/TV show from your PS3 without copying it to another HDD, YOU LOSE IT FOREVER?--I found this out earlier this year.  I'll never see my beloved Black Dynamite again!)
  • ESPN and Hulu Plus (coming soon--but I believe Hulu Plus is also going to be on the PS3)
  • "Inside Xbox" streaming video that tells little known facts and answers questions about the console.
  • The ability to chat with game developers of certain games.
  • Free chocolat milk dispenser.
  • Disc Free Netflix (coming soon to PS3)

Okay, that last one about the chocolate milk was made up and I admit some of these are free to Silver members too.  But I believe (but can't prove) that if the Gold guys weren't paying for it, Silver would suck a lot more.  Plus there's the discounts, deals, fully downloadable retail games, and other things I don't think are worth mentioning.  So there.  Hope I answered your question.  I wasn't kidding when I made the first post in this thread.