This sounds like your typical firmware chip. If this is "solderless" then it could be something nice, but chances are, its just a firmware modchip that can autoswitch.

Whoopeee. Most people who are gonna use the hacked firmware are probably not gonna care if its on all the time or not. Personally, I haven't bothered with the whoe firmware thing yet for 2 reasons. 1, it's much too complicated flashing and reflashing your drive, etc etc. 2, It only lets you play backups or pirates. After paying $60 for a game, I'm pretty careful with it. I don't let anyone else use the 360 at this point, so I don't have a huge need for backups at this point.
Another good reason is my DVD burner doesnt support booktype changing.

(Unless anyone knows of a good firmware mod for that!!! Its the AOPEN DUW1616L-31)