I love Xbox Live, I really do. But man, how am I supposed to keep track of what usernames my friends are using? We need aliases, and we've needed them for a while.
On Adium, the AIM client I use, I put in aliases for everyone on my buddy list. How the hell am I supposed to remember everybody's ancient screennames that are references to something obscure from high school? Instead, they come up as, you know, their names.
On Xbox Live, I have literally no idea who some of my friends are. I have vague guesses based on their avatars, and I knew who they were when I added them, but everybody has such goddamned goofy usernames, it's impossible to keep track of them all.
Wouldn't it be easy to allow people to enter their real names as well and then give users a choice about which to display, the handle or the real name? Or allow people to create custom aliases for each person on their friends list? Because not knowing who your friends are kind of defeats the purpose of having a friends list in the first place, doesn't it?