But, you're not hiding Netflix behind a paywall. Microsoft offered Netflix as an added bonus to everyone that was already using their Live network. I don't get how everyone seems to forget that. People were already paying to play, they added something in to what you were paying for. It was all of the people that weren't paying or now saw that they could get a 360 that started complaining about paying.
How are you hiding something behind a video game console? It's there for video games and they have the technology to do other things with it, but it's a video game console first. I don't see how gamers can say that they want a game console with anger and then turn around and complain about not being able to use Netflix for free. It's not a Netflix box, it's a game console. Despite all of the additional things that Microsoft is adding to the console, they do want you playing games on it and if you are not, then yes, you will have to pay for Live in order to do other things on it. It would be a financial loss for them to make it otherwise.