Xbox Live to add free-to-play games?

This is mostly because of Sony having free content on there online network. Microsoft seems to be behind the times for a long time now. We used to see what Microsoft creates and others follow suite but now its everyone else's creates something new and Microsoft copy's some how.

Wait a minute... Xbox Live? Not that I have an Xbox, which, I know - makes it a [Russ speaking out of turn] situation, but you have to 'pay' for that, right? So what part of "free to play" is the alluring sell here? I'm open to correction here, but I'm also feeling like a cat getting rubbed the wrong direction here.

The reason based behind my questioning this sales campaign is due to my kids constant harassment for me to purchase them Live cards. That being the case, what's the purpose? Other than server access for interactive play; I always thought there was access to 'some' games, flash style & the likes. I suppose that's what I get for thinking

Just quick $ easies from the correction squad if you would please.