My suggestion: Cancel your xbox music subscription - after that, you can go out and buy an iPhone or iPod if you are not that fond of the UI of windows Phone.
If you still have patience, I will give my reasons:
First why you should cancel your xbox music subscription:
1) Xbox music cloud collection is a mess. First, you cannot edit that cloud collection on your phone. You can only edit it on Windows 8 music app or web.
2) If you have a lot of your own music, xbox music will match some of them, so some of them will be in the cloud collection - but some of them will not. This is not a problem if you have only one windows 8 computer (but if you have only one windows 8 computer, the cloud collection doesn't worth a penny, right?).
3) If you sync your windows phone 8 with your windows 8 computer, and because of 1) and 2), you will end up with two copies of cloud collection on your phone - what adds to the insult, is that there are some duplicates, and these not cloud-matched will not have duplicates.
So basically, buying an xbox music subscription will not add any benefits to your music experience on your phone.
Then the music+video app on windows phone 8 itself is an insult. It's a whole mess. Everywhere shows the stupidity of the original windows phone just like more than 2 years ago:
1) You cannot edit playlists on your phone easily (there is a workaround, but it's very difficult to follow).
2) You cannot search your local music.
3) It doesn't support xbox video, so basically it doesn't have any legitimate source of movies/tv shows.
4) No separate volume control for headsets and speakers.
5) No support for smart playlists
6) If you are a classic music lover like me, you will find it difficult to use because the title of the songs are too long to show, and it doesn't support gapless playback.
7) Smart DJ is another joke, it says it cannot find enough information for Mozart.
Further adding to the insult - Microsoft will require you have a credit card on file to use xbox music subscription - even if you've already paid for it. The only way to remove your credit card is to cancel the subscription.
I highly suggest iTunes Match, it works beautifully. Or Spotify, but it come at the expense of not-so-cloud experience for your own music.
Life is short, enjoy.