I registered for X-box Live (well 'Live') sometime in 2011 (mainly just to claim my username), I have logged in twice. I never paid anything and I never owned an X-box. It's just an account which many of these new users probably are.
The X-box live gives great service and features to those willing to pay. The idea is that if I pay for something, I damn well hope it's better than a service which is free.
Hmm, pie.