You don't comprehend to well, I only care about my homebrew, I don't give a shit about M$'s quarterly profits I don't have enuff spare time to waste on pirating games. I'm only concerned that the next homebrew game I release will actually work for everybody.
everyone I know, won't install a modchip in their friends or family members xbox, because they will be blamed for any unrelated hardware, software issue for the life of the xbox. So the % of xbox owners with mod chips will stay low and under the M$ radar. (not worth their $$$ addressing the problem to aggressively).
Free-X , Project neo type, short sightedness is going to make it worth M$ trouble to fuck with our dashboards and we could even see virus like seek and destroy code attached to new game XBE's.
I feel that we have a good thing here, and we will lose it, due to the Pirates and Xbox-linux dickwads, when their only apparent goal is to prove to M$ they could do it. and to finaly get a returned email from them.