I have done this before the installation of the new update. However, have you tried this yourself? Can anyone say that they've gone on Halo 2 with a softmodded xbox--COLDBOOTED just to play--and not get banned from Matchmaking? I mean, I understood what they said in their Autoupdate 4 story.
QUOTE
Q: Does this mean softmods are bannable too?
A: Yes. Softmods that is, a modification made to your content without using a hardware-modified Xbox are bannable. Delete them.
Moreover...
Q: What will happen to a player if his or her Xbox contains modded content?
A: You will be banned if you are detected playing our game with modified Halo 2 content. Your ban will be from matchmaking, it will be permanent, and there will be no appeal process.
...
Q: Have you included any solutions to the cheating caused by players using modded Xbox systems and modded content?
A: Yes.
Since it has an answer to "yes" in the third question of this quote, then they have done something to actually stop players using modded xboxes--including softmods. This is what worries all of us.
Oh yeah, it said somewhere in this forum that M$ has tried to get rid of the "Dual Boot" in xboxes but making an autoupdate. What if this autoupdate tries to get rid of softmods (as is says on the first question in the quote)?