Not to add fuel to the fire, but in the leaked Microsoft documents I'm pretty sure they referenced it as Xbox Live as well.
I don't believe the always on rumors. Mostly because it creates a problem for those who live in rural areas. There are features of the next gen Xbox that will benefit from being connected. The ability to sync your profile so no matter where you go you can sign in and be recognized. No more thumb drives or saving to the cloud, everything is sync'd.
I think the other problem is that they dilute the brand. LIVE needs to be ubiquitous across platforms. Not associated with one device. You have Windows 8, Windows Phone 8, and Xbox 8 all connecting to the LIVE service. Naming it Xbox Live would confuse Live across the different devices that connect to it.
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