Some of you guys are terrible at logic. You have semi good points but flood them with poor logic.
For example, @Cockmeat Sandwich, I respect that you have problems with PS being hacked and therefore some games that are played on PSN are virtually unplayable due to cheaters. However, you act as though paying for XBL is what makes XBL better. Sony could decide to charge you for PSN, not change anything about their network and it wouldn't get magically get better.
Correlation does not imply causation. If you feel that XBL is worth the money because the games you play are safer on XBox then that makes sense. Still for a lot of people, the games they play don't have cheaters on them (e.g. me) so it doesn't make sense to pay for Live.
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Ineedmoney504 - outside of the hacking mentioned by Courtdog, the online experience on XBox is not that superior. Party chat is ok, but it doesn't make for a far better experience. In fact, I liked XBL better when there was no Party Chat. That was when your teammates were actually chatting about the game they were playing and not silent because they were off in another chat room speaking to 7 people that were playing 7 different games.
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The Twenty Club, the word free has always struck me as a misnomer when it comes to the games you get with PS+. However, that doesn't make this a raw deal. Yes you're basically "renting" games because once my subscription ends, I no longer have access to those "free" games that I got through PS+. But guess what...
every time my XBL subscription ends I don't have access to the online portion of the game I already paid for. You tell me which is worse.