I agree Dan, it could and should just be a function of the device that does not require Live membership, MS decided otherwise for some reason. Given that the device is not just sold as a gaming box, but as an entertainment center, requiring an on-going subscription to full function is a turnoff. It is not as if NetFlix streaming is some sort of network social interaction activity like on-line gaming.

I don't know if I want my TV to be anything more then a monitor. All the add on functionality changes way quicker then a TV gets replaced, and so I am either stuck with add-on function that are no longer updated / support / function or I spring for a new $$$ TV to continue to have the new stuff. I'd rather just replace the $100 external box. It should be noted our only TV is a 27" CRT...maybe I am a Luddite