That's not what reviewers have said from what I've seen, they say there is slow down due to the intense rain effects on the outside of vessel you start at in the beginning of the game.
X-box live is something that both Nintendo and Sony should learn from, as it might also offset the costs on the system if they did. Sony is claiming PS3 will be $500 or so because of how much it is to pay for the system to make. A service like X-box live on PS3 might help offset the cost and help sales of the system to normal buyers who just don't want to spend $500. Kinda like an E-machine or those nifty Best Buy computer deals where you save 300$ off the system by buying a long-term online contract. This is something infact all three developers should concider if the $500 price tag is common in the next gen system war.
But overall X-box live isn't a service I would concider getting because of how I am with my PC games. I won't buy an X-box anytime soon simply because there isn't enough unique titles in this country for it.
If you think it's sad X-box in America isn't beating Sony, go to Japan where the sales are downright miserable. It's the least selling system in that country by and far. It's the god honest truth, but the Japanesse laugh at our American game console like they laugh at our American cars.
Not all games are about graphics, also, PS2 and Gamecube have the funnest games on their systems. So far Tecmo is the only one really dedicated to X-box with Dead Or Alive and Ninja Gaiden. Where's the Final Fantasys? Devil May Crys? Resident Evils? They aren't on X-box at all, and if they do get a good game like MGS2, they don't get MGS3 or the followups... Just like X-box got Onimusha... where's Onimusha 2 and 3! Silent Hill 2 and 4! But where's 3? That's another damning aspect to X-box, is that if it does get good Japanesse titles, it only gets half the series.
X-box will never go anywhere if it doesn't get better titles, more huge exclusive titles, and more complete series lineups. The graphics on X-box 2 could make CGI movies like Finding Nemo and Final Fantasy Movie look sad by comparison, but the plain truth is if there are no game worth buying no one will care. Ask Sega, Nokia, and 3do about that one.