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That said, is it impossible
to take all the hardware of the xb0x 36o and figure out what's happening after all codes have been verified, in the stage when the game is simply running and find out what's happening; In other words separate the play mechanic completely from the security mechanic...
Wow, you didn't honestly think hard enough about those matters more than minute didn't you?

<--- Flame free made popcorns. Heh, i know whats it like to post when you really should be sleeping already.
With the model you give it is impossible. You would violite too many things in software and hardware sense. Besides the work to do that would take long enough if xbox360 would ever get completely mapped but then theres these other issues...
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4) The only thing the same is in the end it will run the same software\
<--- specially this section here ( and too many others to mention ). That doesn't go for running linux but yes ofcourse there are "ridiculous" rules aka laws, patents are included in xbox360 also. Ridiculous rules helps to keep the bussiness healthy, people can have their jobs and profits are bigger without company called ie xboxscene corporation doing consoles that plays PSP2 and GC games if it would be legal in first place.

I shouldn't have said anything cause i'm baffled now =)