What makes Xbox Live better than Playstation 3 online?

I have an Xbox 360 with Xbox Live (Gamertag = Inyaface13) and my friend has a PS3 and I we always argue about which one is better online..all he can come up with is its free..and..He always wants to come over and play my 360…
What makes Xbox Live on Xbox 360 better than Playstation 3 online?
the atmosphere,
everyone well almost everyone have headsets, and when they are not talking its probably cause they turned it off.
there is always people online, unlike ps3
and just the way it is setup makes it unique and great
remember
the good things in life dont come cheap.
Xbox live has been around a bit longer than PSNetwork, I think. So it has had time to be updated, fixed, and really grounded. Plus Live has more people. You can always find someone playing on live.
There are so many convenient benefits associated with Xbox LIVE. I bought LIVE for the benefits, not features, and it seems as your friend is coming around to realize that if one buys for features, and not benefits, disappointment will follow.
Hell of a lot more players, and a nice easy set up
There is well over a million people on COD 4 online with PS3 so I don’t know WTF you guys are talking about.
Xbox live has a better OUT OF GAME setup. Thats the difference.
Online IN GAME PLAY ois exactly the same on both. Live just has better community menus.
Its not hard to get online and play with either system.
Jeseth is right, and the only person that gave a competent answer.
Everyone is saying that the 360 has a larger online community, but how many people do you need to play 8 on 8 games. The PS3 has more than enough people to make the games interesting and its not like there is only 5 people playing a PS3 game at one.
Free is a pretty compelling argument, especially since the next update will have in-game XMB support (allowing messaging and music) and Home. He probably just wants to play the 360 because you don’t have a PS3, so he can’t play with you. Maybe you should actually try the PS3 online and see why he refuses to pay for online play. He’s playing COD4 online for free, while you’re spending money to do the same thing.