QUOTE(RichMR2 @ Nov 19 2009, 10:20 AM)

3. Why shouldn't Microsoft disable a feature which was enabled through a dashboard update? The spec of the xbox 360 does not specify that hard drive installs are an option. While this may be a bit of a grey area in the whole "fairness" deal I can see a few ways out for Microsoft.
Because said feature was introduced to increase the lifespan of the console. MS never give you anything for free. HD installs wasn't a case of 'here you go - we've spent $$$$ developing a way for you to play games from the HDD and it won't cost you a penny'. It's more a case of 'we KNOW the DVD drive is prone to scratching discs, either by the console being accidentally knocked, or even just sat there doing its own thing. In order to stop you from suing us over this, we're giving you a fix in the flavour of HDD installs that only work with THAT console.'
Face it - if it was the first option you wouldn't need to have the content exclusive to one console (since you need the disc itself to authenticate it). Now I know why it was DRM locked.
Here's another thought - if MSs detection system is so good, why not allow people to return their modified console back to an unmodified state and re-test for XBL? Rather than have 100,000s of banned consoles out there, it would allow people who made the mistake (or were unaware they're console was modified) to rectify it.