by CS do you mean counter strike? thats out dec 5th!
there have been dedicated servers but i dont really use them, as ive never really had many problems with live, i just play with people on my friends list who generally have a good connection!!
I dont think live has died as there have been loads of great games that have come out and laods which are coming out this month, sch as Crimson skies ( just came out) top spin, ranbow 6 and project gotham 2!!! So in my opinion Live is growing rapidly and getting better all the time!