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rocketpig said:
$288 over 6 years? OH NOES!!!!

Seriously, I agree that the service needs upgrading but losing a $4/month fee (which can be purchased on eBay for less than $3/month) is not the most important part of it.

But it is the easiest to fix and it would increase their userbase.

I'm not going to change my Xbox Live handle every month to save $4. It's not that big of a deal to me -- as Rocket says, it's only $288 for the life of the console. But, of course, you'll often be paying for service you don't use as my 360 gets a tiny fraction of the usage my Wii does, and only a subset of *that* is online play. Whereas my Wii gets quite a bit of online play: Smash with friends (which is a freakin' blast) and Mario Kart world wide (also a blast).

It's the hassle of having another monthly fee.  Seriously, most of us are probably paying about 2 grand per month for a mortgage, so $4 clearly pales in comparison.  But why the hassle of another monthly fee?   

The next thing to fix would be for MS to put a little money down and actually have dedicated central servers. If they want their online functionality to be a first class service, they need to offer dedicated central servers rather than simply allowing people to be the server for a game.