I think some people ignore the fact that XBLA/Indies will ALWAYS come second in promotion to gold subscriptions anyways and no one should be surprised by that.
Most of what I've bought from XBLA this year has been ports like KoF 2002, Street Fighter 3, Guardian Heroes, and Radiant Silvergun, and most of what I've bought from PSN this year has been PSone games like Resident Evil 3 to play on my PSP. The odd new title like Bloodrayne has snuck in occasionally, but apparently the service that keeps me surrounded by the most memories of my childhood and teenage years will be my personal winner.
Woof - If Street Sharks is a "classic cartoon", stop the world I want to get off. Might as well anxiously await a "Jayce and the Wheeled Warriors" or "Sectaurs" image header.
Microsoft does a much better job at promoting these games. And if I'm honest, Sony needs to categorize they're games a lot better. The PSStore is a maze. Everything is lumped together in a ridiculous alphabetical order. And you can't view the entire alphebetized list all at once.
Seriously, think about it. I don't believe anyone can say there isn't a problem. If developers think Valve, Facebook, and Apple are "very easy" to deal with, and most likely more profitable, then why would most go the "excruciating" route?
As 2D Boy pointed out, XBLA used to be the top dog, the place for an idie team to develop for if they wanted exposure and profit. Being hard to deal with didn't count for a lot, because developers had little choice. Things have changed, however, and now developers DO have choices. All the console makers, not just Microsoft, will now have to fight to entice top flight indie developers to produce games for their consoles, rather than jump ship to Valve, Facebook, and Apple.
I tend to buy the games on impulse when they're on sale and I have such a huge backlog I doubt I'll ever put serious time into some of them.
Also, I guess like Billy Pidgeon pointed out, wasn't that 2D Boy thing just for indie games and not the arcade as a whole? Cause I don't really think Arcade is going to die, or decline, just because they aren't (in many peoples opinion) supporting indie games, there's plenty of publishers and developers making games for XBLA that aren't considered indie, out there.
The beef sounds more like indies who have been given access to the big-players' distro channel in the XBLA who aren't happy with having to play by the big-players' rules. MS is wise to keep the quality up there and generally XBLA is only good and up, bar a few exceptions.
If MS is to promote an indie title on their valuable promotion channels, it's only fair that it be made worth their time by getting a good cut or exclusivity to promote the platform, as I bet the big-players pay their due for such access.

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