Big M have won the war with the hackers, reasons as follows :-
although it has been reasonably easy to hack the 360 console to play back ups M$ have released updates to ban consoles so you can't play them on xbox live. Most if not all 360 owners want to play online and the only way to do this is through xbox live. Gamers can't use xbc or xlink kai cause M$ have put ping limits in all there system link options thus virtualy impossible to play online without xbox live. Now most owners with banned consoles have bought new ones to play online, so although M$ claim to make a loss on consoles they are flooding the market with their machine. M$ know the consoles will always be hacked so they make it nearly impossible to play online unless you buy xbox live. They would rather have 3 million people buy xbox live every year than, have these people using alternate free gaming servers (ie xbc, xlink kai etc), to play their 'back ups'.
Until someone can remove the ping limits xbox live is the only way to go.
Hence M$ win !!!