If MS was really planning on blocking existing FW hacks...i really think they would have done something by now. I'm sure if they were going to do it, it wouldn't be so difficult for them to release a live update already. Or they could have started putting updates on newer games like Madden 07, Dead Rising, etc...like Sega used to do on Dreamcast (even though it didnt really work well then). I think they are downplaying it because its more of an underground thing..and they are still making $ off XBL with the modded 360's. I remember reading an article with a response from an MS rep saying they aren't making a really big deal about the hack...especially since it's not tremendously wide spread...it's pretty much just being used by enthusiast "hackers" for the most part. Plus they emphasized the whole piracy = non genuine MS products, not supported by MS, etc.