All the stupidities aside, here's how this tool might be useful. Now that x360 games can be ISO'ed and the contents extracted, figuring out the filesystem used in x360 might be just around the corner. That's where the actual fun would begin.
With x360's file system driver on a Linux, one could connect x360's HD (which is recognized by PCs, but not readable atm), transfer every kind of files in and out of it and look how x360 reacts to them. You could fiddle around with the system files and try to figure out the possibilities there. You could try to format a third party HD to the same filesystem and see if x360 recognizes it (which is unlikely though).
The game backups alone don't do a shit for anyone at the moment - they're just a proof of a concept as long as there isn't a software / hw mod available or if someone gets them running on their dev x360's (any news on this yet btw?)