When I modded my friends xbox, I went over to his house with a hard drive that had already been ghosted from my hard drive, but after putting the chip in, I couldn't get a cdrw to boot. To back up his old saved games we had to use a memory card. It could only hold about a tenth of the games he had saved. His xbox sometimes has trouble reading legit games. I wasn't about to run to the store and buy every brand of cdrw I could find, swap the hard drive 10 times to get everything, or run to my house to get my xbox and put the drive in there. So instead he lost his saved games. I think this feature is awsome for those of us that like to do installs for our friends but don't have unlimited free time.
Anyone that is pissed that they didn't release a non ftp version is a frickin idiot. Would it make you feel that much better if the renamed the 4077 to 4078_noftp, just so that you could say you were still running the latest bios. Also why should they make a bios for other people's chip. When they released a 1mb chip, they said it was a feature that would be needed in the future. Don't hate on them just cause you didn't listen.