Seriously, i hate it. When it first came out i thought it was a really cool feature which let you chat to people who weren't even playing the same game as you, while you both play. Sounds great on paper, but in practice it has ruined team games like Halo and Battlefield beyond repair.
One of xbox live's strengths was the sheer number of players who would have a mic. You'd enter a game and the majority of players would have a mic with only one or two not using one, which was a massive improvement over other multiplayer services.
Now thanks to team chat, people with mics has hit the gutter. You can't talk to anyone on your team because, nine times out of ten, they're in party chat. So all hope of teamwork or communication goes out the window.
Personally, i think this can be improved in one of two ways:
1) No party chat allowed in team games. If you want to play Battlefield or Team Slayer, you can't segregate yourself from everyone on your team.
2) Allow people to *also* talk to you as well as the people in your party. I don't see why you need to block out everyone else just to chat with people in your party.
Discuss. :)
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