You keep rehashing your same argument by stating the features of XBL which have more in common than not with services like PSN and Steam; both of which serve the same purpose only without the subscription fee. They too have "engineers and developers for both that are needed to improve the service through features or maintenance."
MMOs like WoW are based upon a business plan where the razor is all but given away, but the blades are what provide revenues for Blizzard. You're in the minority in perceiving that a paid XBL subscription is comparable with WoW or AoC. It would be a hard sell to anyone with a WoW account that XBL is a similar service at a third of the price.
The closest thing to an MMO online console service would be Home, which is currently still on record as being a free service, albeit subsidized by in-game adverts and in-game item sales. Technically, not even a game, but then neither is texting or voice messaging people on your friend list either.
XBL is a gaming portal with an online store. That's it. You love it; we get it.
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