This is not entirely possible, but it's possible you'll prolly win the lottery more than once before you can generate enough valid information before you actually can connect to live.
Firstly, you don't generate an EEPROM unless your on star trek and got one of those holodecks. The EEPROM is a physical component.
The XBox live relevant information stored in it are the serial number, which some people did make a generator for a while back, the online key, and the Unique HDD Key (not to be confused with the hard disk serial number).
This is defiantly more complicated than generating a valid CS or BF2 key.
You need to generate 3 keys now. I don't know how M$ does their banning checks, but I'm sure when M$ generates their set of keys they have a system that logs those relevant keys that are stored in a data base used for authentication.
Now lets say that they pair the hdd key with the online key, now your talking about possible random pairings. How would you account for that? If you were to test each combination generated, it would take more time than it is worth (especially since you can purchase a key for $10).
That is if you could us a PC to connect to the XBL system for verification. Now your trying to figure out more than just error codes, which we don't know really a whole lot about anyways. Now you are looking blindly at understanding the protocol and commands sent back and forth between the Xbox and XBL servers (which are most likely encrypted).
As for the examples of kia or xbconnect, they are just tunneling software that tricks your Xbox into thinking that it is on a LAN (VPN may do the same trick). If you understand how a bridge works or used Kali, you'll get the idea. XBL is much more sophisticated than kia and xbconnect, and, for the most part, no way similar. It's like comparing DirectX with mspaint, they both can draw pretty lines but DirectX is a tad bit more.
And the Windows XP key generator example, it is generating a key offline and some will provide a "crack" to bypass the online verification. If you don't believe me and are running a hacked copy of windows, shame on you, then just run the 'windows genuine advantage' and see what happens. Its not impossible to do as it was suggested and do a brute force method, verifying each generated key. Again this would take a long time and a lot of attempts that M$ could either deny after so many tries or keep a log of (food for thought).
The real reason no one has made this magic eeprom generator is because its just not realistic.
So as it was said before this thread is a joke, it just requires common sense to actually understand why.