No xbox live will never be free, but it is not the say that it is unreasonable.
I pay less than $3 bucks a month for live because they give you a discount if you have been with them for a long time. I was with them since the beginning and I have never had problems. I play with my friends almost every day and it is fun. It more than makes up for the price. PLus the functionality of XBL and such is good. I had a lot of problems with the PSN network and even thought it is free....it is not really that good compared to live. I am sorry if some of you disagree, but we all have our own opinions.
I pay $36 bucks for 13 months. Yes 13 months because when I buy a year subscription they give me a month for free. Anyone who doesn't agree that this is a good price, I will just use the PS3 fanboy excuse: "Good things cost good money."
HOWEVER, there is some games that you can play for free online with a silver account which is free. Mind this is only 5 games out of all of them, but hey they are free.
Also, someone mentioned WoW and such. Yeah think about this. You have to pay 15 a month to play that game...just one game. I pay $5 on XBL and play any amount of games on live plus I can have some free downloads for some games, plus free demos when they come out, plus other things.