I hate to be a fly in the soup here, but I guess I might as well toss some of my understandings out. I'm no team X member, but to my knowledge just "chipping" to cover the patched and fuse-burned parts of the box is hardly practical.
I'm not as versed in the 360's architecture as it's predecessor, but a burned efuse, to my understanding, is in the CPU. Thats the legendary multi-core processor. You can't really just practically toss a new CPU onto a chip and call it a day, any easier than you can repair all the components surrounding it. You might as well just produce a new 360 mobo and call it a modboard, and just cut out the need for chips/soldering at all.
Is this an interesting hole? Yea, it sure as hell is. Is it practical at this point? Hell no. It needs to be refined by those MUCH better versed in assembly and the hyporvisor concept before it sees any fruition. Hopefully those same people won't go running to M$ shouting "mommy mommy, look what Timmy did!!" just to get a cookie for it. Legally, yea, smart move. But you sold your soul to the devil man. Bring back bunnie, I say.
But I'm babbling here. M$ really did make a good security program this time, something we're finally realizing. There isn't such a thing as a hack-proof piece of hardware, the laws of entropy forbid it, but it can be hard as hell to break. If it were only as easy as the PSP, then it'd be spectacular, but the problem here is M$ built in the proverbial "kill-switch" that can be re-used. They fry a fuse, and everything gets locked down. Period.
Feel free to bash me if any of my facts are wrong, like I said, my 360 knowledge isn't too huge.