According to The Bitbag, Microsoft will be compensating their Xbox LIVE Gold customers for the problems the service has been having over the holiday—somehow. An unnamed Microsoft contact told the site:
...we will definitely be doing something for our Gold members that weren't able to get online over the last week.
Subscriber rights to some sort of refund seem a little vague here, especially since Microsoft has said that the service isn't technically down. It's like if your satellite or cable was working, but the channels you actually wanted to watch weren't coming in—is that a full refund situation, since you only bought the subscription for those channels anyway? Or, since you can still watch HGTV and the 24-hour Oprah Channel...well, I think you get my wordy metaphor.
It's just a shame that LIVE is having so many problems when so many actually have some time to play (and plenty of newly gifted games to boot.)