I think it's a little early to say 'proving to be'... right now we're at the 'may prove to be' stage with regard to user generated content.
If you look at what live is about (to me anyway) vs what I think Sony is going for here (and perhaps more in general) there is a big difference.
Live makes it very easy for you to make/keep online friends and play preset games (i.e. little user generated content) with them. The Forge in Halo 3 is a little different but it only allows limited changes vs PC level modding for example. Live is about getting together and diving in to a game made for you by professional game designers.
LBP, while a true game with its own levels, is all about user content so far as I can see. Yes it may share elements of playing with others a'la live but its more about creation of something yourself than playing something developed for you with others.
I think its very exciting but I am not sure about the true demand/longivity of the concept. I think it is superd but, at the risk of sounding elitist I suspect the majority of gamers today are still more sitting back in their couches looking to be entertained rather than thinking of sitting forward, putting in effort themselves and creating something to entertain not only themselves but others.
I'd like to be wrong about this, and I guess time will tell. If user content did become a massive part of online console gaming then yes, MS will either have to change their approach or it might become something of an Achilles heel. If not, then Live will be fine as it is.
I wonder how many people here would prefer to play online in something like RFOM2 with buddies and rack up Trophies vs take the time to think about and create something in LBP?
I plan to do both myself.
Try to be reasonable... its easier than you think...











