Yeah, the xbox live service isn't free like the PS network, but it is only $50 per year.
You can watch people sing The Who in karaoke bars for free, however spending the cash for a seat to see the real band is much more satisfying.
The PS3 online multiplayer stuff has improved, but it's still pretty hit or miss at times on features. Xbox standardized a lot of stuff that becomes pretty easy to take for granted. (Universal friends list, cross game invites/messaging, the party system, much faster patching/installing, voice chat channels that work across multiple games... you and I can play two different games and still chat online, etc.) The PS3 stuff has gotten better, but it's been a pretty slow ramp up for them.
Live subscribers also now have access to streaming Netflix. It's a nice upgrade from watching on your PC, but for us sound nuts it's a little lacking. (stereo!) However, it's not bad if you need to catch up on some documentaries.
