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I can see them being "competing" since the NXE (especially post the social games updates that are forthcoming) and Home are both intended as two types of social experiences.
I don't mind paying for XBL, though. The ability to chat between games and have such great integration (like guaranteed custom soundtracks) are worth the $4 a month, especially when 9+ million people are paying $15 a month to play WoW.
For what its worth I have a 360 and don't have a PS3. And for one, I love the Netflix integration :)