One of the biggest advantages of GTV is not the perfect video quality, or the options you can only have through GTV, it is the cost of bandwidth. If 10 million people are watching, and the streaming video bandwidth requires 2MB/sec, we're talking a cost of 20,000,000,000k/sec. With GTV, the streams can be flawless at like 10k/sec, which means 100,000,000k/sec. I don't know the specific costs of bandwidth, but over long periods of time, I can imagine the additional cost of streaming video would be significant. With something like xbox live, people would have no problem using GTV.

It doesn't have to be exclusively one or the other. For business reasons though, people should be strongly encouraged to use GTV.