"Thing is, there has never been a 2D fighter that is arcade-perfect on Xbox Live. Lag in a game like Guilty Gear or Street Fighter is much more noticable than with a basic FPS. If they can get that smoothed out, yeah, that should work. Considering arcades aren't an option for roughly 90% of people who play fighting games, there isn't much choice."
This is what I felt too. XBL and PSN are great prospects, but the problem with playing on-line is that a player really has to readjust his/her fighting style to play 'with lag.' You're right, there isn't any alternative choice outside of Asia, but, at least for me personally and maybe others, the lack of 'real' competition is what lessens our interest in fighting games (also considering the other setbacks, having to buy a ~$300 console and find that even on its online service theres hardly anybody to play against because everyone is playing some sort of FPS!)*
"I'd say there are about 4-6 (maybe 8) things I like about Dead or Alive and gameplay ain't one of them. And it's still better than Virtua Fighter or Tekken."
Dead or Alive BETTER then VF or Tekken? You've got to be kidding me!
* I personally don't own one, so I'm going by what I've read/heard and my experience with my friend's 360. If I'm wrong and there are many people playing fighting games, then, I'd be happy to be wrong!