Playfeed has an interview with Kaloki Outpost X creator, Steve Taylor up today. It's a pretty good read.
Mr. Taylor, who is president of NinjaBee and Wahoo studios, is a great example of what the Xbox Live arcade is capable of doing. Like he says in the interview, he is the president of just a small company, and normally a small company isn't able to develop games that are available on a console like the 360. However, the XBLA enables pretty much anybody to create games that they can sell over the marketplace.
I've always been a huge proponent of the XBLA and this is exactly why- people complain how gaming is getting too big for the developers good, and that the small fish are getting eaten by the giants like EA. Well, the Live Arcade provides a cure. Let's just hope that companies like EA or Ubisoft try to invade the arcade.
If you're interested, here is a link to the article.