XD, the OP was horribly biased, using a PC as benchmark for many of his points, it would be better to use the PS3 since that is the OTHER HD console with an online gaming service.
The OP forgets that Xbox live is free. However, if you want to play games with friends, you must pay.
The $50.00 a year price tag is faulty, you can find it for $38.99 at a variety of sites, and at Costco. Also, it's not a huge price to pay when you factor in the enjoyment you get from your well spent $38.99.
Crossgame voice chat, IS a very nice feature, but in terms of saleability, I really don't see it a a huge selling point for XBL, especially since you can chat with friends who don't have gold.
Avatars were added after the fact, and have nothing to do with the price, they are just another nice perk.
The interface is excellent, easy to browse, easy to use, regularly updated, so once again, the OP is mistaken.
MS points, are actually a good thing, as annoying as they are. I have one word for you, exchange rates. MS points eliminate that headache.
Games on demand, last time I hear, you had to wait for you used game to arrive from Amazon...need I say more?
In closing, yes, Live has issues, but what online gaming community doesn't. The article was wrong on most points, it seemed to be conjured up by a blatant PS3 fanboy.