It doesn't even make sense from a corporate standpoint. Customer goodwill is an extremely valuable commodity. Understanding WHY they do it doesn't make what they're doing reasonable. People don't like being taken advantage of. When you sense that your mechanic is screwing you, you find a new mechanic. What Microsoft is doing makes its customers hate them a little for it. Things like this add up and lead to disloyalty.
I agree. I just don't think that we can do anything about it. As frustrating as their policies are, people still pay for a live subscription and they will continue to do so WHILE COMPLAINING. It doesn't work that way. A company is only going to listen to your complaints if it effects sales. If you have a problem with live then don't use live. If you use live anyway then it must not be that much of a problem.

I HATE the DLC model, for example, but I realize that there isn't anything I can do about it. When people are still willing to pay 20 bucks for horse armor we don't have a chance for change.
What are the alternatives anyway? Nintendo is FINALLY getting on board, but for the longest time the internet just didn't exist in their eyes. You think that Sony is going to be a force to be reckoned with what with their free alternative and then they drop the ball with their crappy security and have thousands of credit card numbers exposed. There is of course PC gaming, but it seems like anymore every big online title is tethered to either steam or games for windows(aka "pc live") and they have quite similar faults.
Ugh, I don't want to think about it. Off to play some skyward sword.