Xbox Live Gold, Is it really that 'expensive' ?

The first thing that comes up when you have a discussion about Xbox Live and PSN is, 'I wouldn't pay 5$ a month' 'Just to play online'. So I'm thinking, 'what is 5$ exactly, and is it really that much?'. I think this is ridiculous, this shouldn't even be an issue.

It's less than you would spend on a pack of smoke (if you did smoke), and I mean I spend more than that on lunch. Are people really that skinned that they think 5$ is 'too much' to pay for a good service?

What can you really do with 5$, really. Unless your under 16 and don't have some sort of job/income I can see it being an issue, but for grown men, come on.