I cannot believe no one has reported doing this before...
But, you can load it up, select "UNLOCK WITH MASTER PASSWORD"... Enter the password... ("TEAMASSEMBLY" in my particular case)...
And it removes the lock status without disabling it entirely. It comes back on the next reboot, but not if you just close ATAPWD and reload that.
ATAPWD even tells you the security level. Press the F1 button for more info on what the display means. It's a really, really cool program.
Though, and this is the aggravating part, even a "soft" reboot via Ctr-Alt-Del results in the drive going back to fully locked. I don't know how to get at the more useful tools XBoxHDM provides without re-instating the lock as there seems to be no command from the DOS environment to return to the initial boot screens.
But, best I can make out this
works. And I bet something really kick-ass can be done with that knowledge.

The Linux tools (xboxhdm option 3) can do what the DOS tools can do too. A simple modification of the unlocking shell script to try the master password WDCWDC... or SeagateXXXXXX. I think this covers 2 out of the 3 stock hdds used in xbox. Or does the pair of master passwords cover all stock hdds?
I don't have the the unmodded seagate to try anymore as I've used xboxhdm to lock it so the master password has changed but I can try the procedure with the xboxhdm master password ... actually does xboxhdm change the master password?