Just wanted to say XBL is definitely a service. It's the entity that connects Xbox consoles around the world & provides consumers with pretty cool features. Should it be free? That's up for debate.
Indeed, as a business decision it's sound to charge, as a consumer (well I'm not really bothered) but I can totally see how many don't like it or agree with it.
But yeah, it is a service, I'm pretty much done arguing with this guy though, if Sony had any sense about them they would charge next gen, because they can, and they need the money. Common sense.