I have to agree.
I think Office Live is a nice concept, but it's an amalgam of disparate applications that don't really work well together.
I am just starting a new company and have been testing the solution - there are so many weaknesses as compared to say, deploying a Small Business Server2008 solution. But for many small businesses, onpremise SBS or other solutions do not make sense - thus the hosted approach could work - but not in this form.
I can not believe that I can't create an appointment with a reminder. I can't belive that if i go into Hotmail, I can't invite an attendee to an appointment.
The best thing about Office live is the integration between WSS and internet - if you understand the capabilities of the workspaces, this could be a valuable tool; but for PIM activities, this is severly lacking.