Who cares about their "TOS" or "EULA"+- banning users from Live for this reason is lame

..
You lose you're warranty by opening it anyway, so MS isn't (or shouldn't be) repairing any damage you might make by doing the mod or adding some other stuff anyway. And I'm talking about the 12V mod, not an intercooler ...
Also you're not even messing with their precious Live System - this is a simple hardware mod with no affect to the software part.. or am I missing something here..
In all fairness, using any of the current firmware hacks don't allow any cheating/hacking on live that isn't able to be performed with an original disc, but it's grounds for banning. Any modification means *any*. I wholeheartedly agree that it's wrong, and partially feel firmware bans are wrong, but not much I can do about that