Oh yeah, LOTS of people . I think it's the best system right now hands down. The major problem is that the game developers and XBox really need to do something about people hacking/cheating. It takes away the whole fun of trying to play a game online.
I still play my Xbox. I dont play games like I use to, I use iheartradio on mine all the time. I bought a white one back in 09' and its worked flawlessly. In fact its extended warranty is about up, I've been kinda hoping it would crap out so I could have two black ones lol. I bought the only reliable "white" Xbox I no of lol. Once halo 4 comes out I'll really be using it again.
My Live ran out a couple months ago and I probably won't renew it until the fall. Summer is extremely busy for us so it's really not worth having the Live membership over the summer. We'll be back on in the fall.