One of the main things that makes Live better is integration.
I can go on any first party title website (Halo 3, Forza 2 etc.) and login with my gamertag. No need to sign up again. I can use my gamertag for all.
Whats even better is I can manage all my game stuff from my PC.
In forza for instance, I can create a car and custom paint it (Not that hentai porn crap all the Japanese players have plastered on their cars in it). then I can go on my PC, download pics of it and put it up for auction on the forza website.
In halo 3 I can play my games and all details (kills, deaths, headshots etc.) are uploaded to Bungie.net. I can take screenshots and they are uploaded to bungie.net. All my game variants and game maps I create are uploaded to my file share on Bungie.net. If I see a game variant I like on Bungie.net, I can click download and then the next time I turn on my 360 and put in Halo 3 it'll automatically download it.
With your MSN, if you sign up with the same e-mail address as the one with all your MSN mates on it then you can chat with your MSN mates while playing. If they have a 360 then they are added to your friends list.
"Live anywhere" which'll be released sometime this year will allow you to access your profile from your phone and access all your stuff from there. If you have a Zune then you can paint your cars on Forza from that and then transfer them over to your 360 when you get home.
With Fable 2, there'll be a poker/craps game which you can play on your Zune/phone which will earn you money which you can transfer over to Fable 2 when you get home
