The original Xbox firmware hack hasn't been released or recreated yet but its totally different from this.
There are many easy ways to launch legal backups on Xbox, so making such a firmware would only have one benefit in comparison:
-you can play backups on live
On 360 OTOH it would:
-allow for new game data exploits to be found
-be the first method to make legal backups
-also allow you to play on Live with a backup
So the makers of this hack have weighted the first two points against the danger of Live enabled copies and decided its not worth it. But as it has been pointed out before, there's lots of skilled coders out there and we only need one who thinks otherwise and there may very well be a public solution soon.
EDIT:
How about we make a joined fund and whoever releases this to the public get the money ;-) Like the 13000$ that some guy got for presenting a OSX/XP dual boot solution. I'm sure at some point one of the team members will cave
![biggrin.gif](style_emoticons/default/biggrin.gif)
(just kidding, that would be evil)
They already said it would be easy for MS to detect.