The new 360 Live is more functional and packs more features than previous attempts at remote Xbox Live control over your iPhone, but it comes with a cost $1.99. However, a year-old Microsoft policy might reduce that to $0.00.
360 Live automatically retrieves your friends list when you sign into your Xbox Live account with it; organizes and groups your friends the way you'd expect to see them on a console; lets you change and update your Gamer Profile info and, most usefully, allows you to send and receive messages over XBL, even to multiple recipients.
Left unsaid is how this fits with Microsoft's edict last year that all iPhone/iPod Touch apps pertaining to Xbox Live be offered for the super-low price of free. For now it's $1.99, a nominal-enough fee if you just have to have the capability. Otherwise, keep an eye on it, this might attract attention from Redmond. Or, if Microsoft insists that it go for free, it might get pulled. So then you might want to buy it now. Who knows.
360 Live [site via Joystiq]