Well, of course. Personally I think Xbox Live is the worse feature on the xbox. I mean screw paying for it. Get a PS3 it's all free. But back to the avatars, Yea, Home is way better.
The reason that MS us using Mii like Avatars is because they are trying to make it big in Japan where Nintendo Miis are like anime' characters, even Sony Worldwide Studios Head likes them because they are more like the Japanese culture. So when he said that it is obvioust that Sony has a wider and more mature audience in mind.
MS is competeing for the "casual gamer" hopefully trying to turn them into "hardcore gamers", but that will fail.