To the ones crying about these news being "too late":
The hackers had a simple choice:
A) announce the hack before the update is out and risk showing their cards to MS (remember they couldn't know that MS already knew about it
OR
B) Wait and see if MS fixes the issue and THEN warn as quickly as possible.
If MS doesn't fix, they can happily perfect it (and maybe find a way to get CPU key via this method) and then release it.
To me, B) is the obviously better choice. Besides, anyone who cares about Live security and/or homebrew will always hold off updating for at least a few days. It's not their fault that you're addicted to updates

Finally to everyone saying that "homebrew on 360 sucks" or "I'd rather play live". You're not getting the bigger picture here. They already stated that it will most likely allow us to get the CPU key which is required for downgrading, region changing and DVD key extraction.
Even if you never plan on using emulators or apps like XBMC on your 360, this is a VERY important bit of information about your 360. Down the road, it may allow booting games from HDD, loading the Live Kernel via Software (think Xbox1 softmods), turning the 360 into a full blown PC, allowing bigger harddisks then 120GB and so on.
DO NOT UPDATE, WAIT A FEW DAYS UNTIL WE KNOW MORE.
@somenutter: i estimated 90% would be fine because many people don't even play online and of those who do, not all are addicted enough to play every day. And the clever scene members always wait at least until the update has been confirmed to be save in regards to firmware mods.
I understand you're bitter but it really is nobody else's fault but yours.
This post has been edited by ZakMcRofl: Aug 11 2009, 10:53 PM