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Everyone single person i know says that xbox live is better, but when you ask why they simply say because everyone is on it and much else to be honest. I'm willing to bet that if just the multiplayer was free on xbox live like the psn then you would see a massive decrease in people actually paying for the subscription.

Sony just need to find a way to emulate ps2 games and release the full catalogue on psn, i think they are already taking other correct steps with the cross platform games like dust and portal 2.

Microsoft is always going to have the better service as it is more popular, at the end of the day thats why you play online