That article is pretty lame compared to what is really being rolled out - i.e. it doesn't say much.
First off, it's not taking anything away from live, it's just improving it.
The whole avatar and comunity support thing is actually brilliant - it's a much better offering that Sony's delayed by 2 years still in beta "Home". It brings the great community/networking parts of it, but simplifies it and leaves out the crap "ooooh, i'm in Second Life virtual reality - I can show everyone my virtual pooh it's soooo real" wank ...
The new Party system will allow 8 people to simultaneously chat, watch movies and share pics together ... no need for crappy virtual reality bedrooms and virtual reality TV's and virtual reality consoles in your real console .... Basically microsoft has reinvented HOME in under a year and is going to release it before Sony could even get it going after over 2 years ...
Not only that but the WHOLE Xbox Live market place is getting neat a revamp:


