Hello there
First thanks for opening the Xbox360 to hobbyists, even if I don't like the "Youtube for games" stuff, I'd rather say it's an adaptation of the freeware/shareware system from the PC world. Concerning the business model, if the creators will be able to set a price for their games, I suppose a preview/demo of the game would be a good start, following then the same process than the XBLA games. What about internet payment methods like Paypal to transfer money to the creators ?
The possibility for a XBC game to be promoted to a XBLA game is a good stuff too, maybe based on a couple rating/downloads, I'm sure that Xbox live guys like you will keep an eye on every game release.
You seem to expect quality games, that's fair to keep a high value on the Xboxlive, but I'm not sure it's compatible with "hobbyists". In that case, the set up of T"R"C ( technical "recommandation" checks ) and some basis for the gamedesign would be useful ( title screen, menu, playable game, to win, to lose, to restart, to quit, and of course no bug :).
After reading many posts here, I realised I was wrong on my first idea of the XNA for xbox, but now the Communauty games match my expectations. I look forward to the set up of this stuff soon ( especially in France :) ).
I read somewhere that Microsoft was trying to refrain the retrogaming on the XBLA, but with the Communauty Games it's a chance for small groups to make fine simple games. As for me, I'm still in love with old games from the 8/16 bits generations ( Thunderforce,Street of rage, Valis, Phantasy star... ), I'd really like to make something with XNA for the xbox, even if I work as graphist in a french studio on nintendo DS, I have some skills in programming ( at least a tetris like game released on GP2X handheld this year, which is a good start lol ) and some ideas.
Let's see what the future brings !
Cheers.
Olivier Lunot / Phaxan