I disagree with the dismissal of marketing being at least part of the problem with the success (or lack thereof) of Bulletstorm. Everyone I know who enjoyed that game - including people on a couple other forums I frequent, real life friends and myself - went through the exact same scenario with that game. Very little understanding of what the game actually played like, but felt like it was trying to be offensive and "extreme" in a corny 90's way and was completely turned off. In fact, they clearly toned it down a bit as there was a lot of homophobic and sexist jokes in a lot of the previews that didn't materialize in the final game. It was only word of mouth long after the game was heavily discounted that I discovered how fun it was.
Also, based on all the rumours that came out, it sounds like the failure of Game Room was actually because it wasn't expensive enough. A lot of publishers thought they would be better off repackaging their classics for $10 on Live Arcade (or in their own disc collection) instead of just a few bucks inside a fake arcade skin. So the idea of a subscription sounds ideal, but there's no way it would have gotten off the ground. Problem is publishers thinking there is a bigger audience for older stuff than there probably is.