The problem with GFWL wasn't in the lack of features - it just didn't work. I've had so many problems trying to play games connected through it I just gave up. Resident Evil 5, Dawn of War, Lost Planet - I could barely get those to work, so just gave up in the end. A few months later when I remember to, I could enjoy some of them, but by that time, my interest had waned. GFWL was more of a death sentence than feature bundle (requirement). When Microsoft revamped it last year or whenever, I was expecting a big overhaul - what had changed? Nothing...
I'm just happy in the knowledge that developers are now turning away from it in both frustration and out of respect to their customers. MS has a hard enough time keeping messenger working, so what were they expecting with GFWL?
I am glad MS is dropping 'Live' though, it was just a lot of fluff for no reason. At least we never had "Windows Live Notepad"... Though I'm surprised the EU allowed MS to include Notepad in a Windows release; a bundled simple text editor cornering the market... how dare they!