I'd like it if nobody brought up powers in this thread. You can get powers for free. You can't get a Chatango BG for free.
Now, let me add on to what was said...
Xat has a feature that allows you to put a radio on the chatbox.
You can change what owners, mods, and members can do and make temporary moderators/owners.
The sound is very annoying, but you can turn it off, this includes audie sounds.
Xat has superior smileys, most of which are available without needing powers. In fact, almost all powers only give you effects to use with the smileys.
There's a feature for video or voice chatting that's easy to use and works well.
There's a cool doodle feature which lets you doodle with friends in PC or doodle with everyone in main chat.
There's a lot of games including Chess, Connect 4, Pool, and a lot of other things.
There's an IM feature which adds your friends from Windows Live and AIM to your Xat friends and allows you to talk to them.
There's also a grid for viewing people's avatars which you CAN'T steal unless you abuse a glitch. Also, there's built-in Youtube player that stores the last 3 youtube videos and photobucket pictures. You can even hold shift and click a link and it'll open in a new tab rather than showing in the youtube player.
With Xat friends and PC/PM system, you don't need to open a new tab just to talk to somebody privately. When you click their name and click "private chat" it will allow you to talk to them in the chatbox on a separate tab. You can add friends and see what chat they're at and PC them no matter which chat it is.
You can give your chat tags so people can find it when searching using xat search feature.
Your Xat account CAN'T be hacked as long as you have account locking. People logging in from a different IP address will immediately be locked out and have no access at all to your account.
Xat also has no lag unless people are stupid enough to put like 10 smileys in their name and there are 5 or 6 people all with 10 smileys each. It will never just stall out and then post a bunch of messages in a row like Chatango does.
You can change your name without making a new account and you can change your picture right there in the chat, no need to open a new tab. There are also default avatars provided for you, but you can use your own.
You can put a link or a message in your homepage and it will show next to your name every message you post. This can be good for putting your Youtube or anything you want.
If you click a registered user's avatar, you will go to their Xatspace, which is almost exactly like Chatango's profile page for users. Very customizable.
You can turn chat sounds on and off. Same goes for the radio.
There's a space at the bottom where you can embed anything. And there are several tabs. You could embed a playlist, the forum, or anything else you may want.
They have a chat for helping with anything you could need and also a support system that doesn't require you to email them then wait for an email back.
Possibly the most impressive feature is the report unfair ban. Whenever you're banned by a moderator, you can fill out an unfair ban report which will be sent to the main owner. It will show messages leading up to the ban and give an option to demote the moderator.
Xat is way ahead of other chats as far as FREE features go and even what you pay for, powers, aren't THAT good. You don't need them. Very few are actually useful and not just for show. But there are some that have uses and, of course, group powers. Which everyone can use if they're assigned.
You can also put your own Background on Xat, unlike Chatango. Also you can use your own buttons for sign out and stuff.
I definitely support this idea. Much like Sparky, I'm not on Xat much because I have very few people to talk to and I come to Chatango ONLY for TND. I don't go to any other chats.
Oh, and Xat will show your chat on its homepage if a lot of users go to it. "A lot" can be as few as 5!