I think the OP touches on an issue that XBL should innovate in order to continue its services, with competitors having caught up in quality XBL needs to make that subscription a more valuable service.
1. There can be arguments that the servers are worth having under 1st party control and there can be arguments against it. As some have mention it provides a stable platform for publishers/developers to host their online gaming portions. Though this point begs the questions: Do they want that? Are there restrictions for taking advantage of said service? Can they opt out and provide their own? If they are willing to host their own servers on other platforms, do they need Microsoft servers?
What structure is really best and does a subscription fee justify it? Is the alternative perhaps better?
2. Online gaming aside, XBL is required for none Microsoft funded services like Netflix. Unless I am mistaken. This seems more of a question of ethics. While one may see online gaming as the main draw of XBL there is no denying the importance of social and media apps like Netflix. If these applications are not part of Microsoft's server equation why are they restricted to their premium service? Without XBL, the 360's functionality is severely limited by this exclusion and a reasonable assumption is that these services are used as bait to attract and retain subscribers. This aspect of XBL should be up for change and consumers allowed the right to access in order to be competitive.
3. Provide more exclusive services that justifies and attracts subscription. If Xbox offers a good social platform, proprietary apps, or other innovative features they serve as an important bargaining chip in the consumers mind. Widely available third party software services are generally free on other platforms. To enhance XBL's value, dividing features must be offered. While this gen say cross game chat as a seminal benefit to XBL, the lines are blurring next gen and XBL will need to offer more to address the advancement of competing services.
Instead of arguing for the sake of defending your preferred platforms or your individual benefits from such and such service. Look at these points and try to determine what route Microsoft should take next gen. Will status quo be enough for them if free services like PSN is its equal? What if other services provide even more than XBL? What can XBL do to compete, add more, go free? Let's discuss.
Before the PS3 everyone was nice to me :(
