There is enough value here that it doesn't really matter anymore IMO.
There was an argument when XBL was first introduced, but rolling out that network back in 2001/2002 was NOT cheap. The fact that I was playing on the internal beta of XBL back in 2001 and work as well as it did was incredible...one of the few times in where a console infrastructure was much better than anything on the PC.
I don't think many people know, but if you were in the first rounds of the beta you could actually connect to XBL with dialup speeds, but only worked well if you were relatively close to the other connection or playing ghosts and shyt in something like PGR.