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Unless developers did a terrible job with testing their game, patches are good in that you can get things fixed quickly (depending on the developers) and get more things added and such.

Steam is a good example. Pair that with a game like Team Fortress 2 and you can get your patches and added content quickly and instantly.

Something like Live wouldn't be touted as this amazing thing if it didn't start to offer experiences closer to the PC.

Heck, I recall people saying that the Wii even needs a larger hard drive (mainly for VC games though).