Whether or not Xbox LIVE is worth it is completely subjective... What do you prioritize? Personally, I prioritize intuitiveness and reliability over "free" stuff that I'll never play. If there's a game I want, I'll buy it with little regard for whether or not it's on sale.
I'm sure someone will quickly link to an article with a "Ha!" attached if I'm wrong...but I'm not sure that I've ever seen anything stating that people's personal info / credit card numbers / etc...were stolen off of MS's servers. Idiots lose their accounts through phishing... Granted, the Sony breach was forever ago...but that brought with it a stigma that it's difficult to disassociate with them...