The new update will extend that functionality to allow several levels of visibility of your friend list to others. Those 13 and up will be allowed the ability to show their friends who else is on their list. Adults will be able to make their friends list public. For those under 13, all friend lists will remain blocked.
What’s also somewhat interesting is how Microsoft is billing this update in their press releases, saying that the feature can be used as a tool to “find old friends or connect with new ones within the community of more the eight million people.” Of course, a community of eight million does not a social networking powerhouse make, but it ain’t no slouch either. I doubt there will be much use in the social network (at least initially) beyond being able to scope out other potential game-mates.Xbox 360: Social Networking Platform