My friends and I use Party Chat because we don't
want to hear the other players as there is always someone who has their TV turned up too loud and through the mic it is deafening as is someone who never stops fidgeting and people talking gibberish in a different language.
Of course the main reason is the amount of prepubescent shut-ins where Xbox live is the only ''socialising'' they actually do yet all they can manage to contribute to a conversation is Racial/homophobic slurs.
Also who the heck sends naked pictures over Xbox live?
I prefer to get my bits out on my webcam site, pm me for the link