I think using a "retail" setup with anythingthing else completly shatteres the advantages to Ndure retail. Sure it's still "non-coldboot" XBL, but you dont have a friends list etc.
The *.du folder issue (error 21 on tray open boot) can be avoided by enabling auto-sign in. Also, without the retail dash setup, switching to a full retail state (with UDDAE backdoor) is not so easily done.
When using a hacked dash for non-coldboot XBL over the M$dash i see the following:
Pro:
No more error 21 due to dashupdates with auto sign in
disabledFuture updates cause less hassle (if any)
Con:
No more M$ XBL fuctions such as friends list via menu.
Full retail state switching is harder (requires a backup on E)
But since i'm not assuming any smart moves from M$ that cant be overcome if a few weeks, and most live users have auto sign in enabled anyway, the only way i see this being really usefull for casual users, is if M$ overhauls XBL next month and the dash cant be used via the current open-tray setup (hash checking xboxdash.xbe for example, killing ANY softmod with XBL

).
Not that i oppose the goals BTW, just noting some points here. And i also thought fuckMS only applied to retail XBE's (cant be used on debug XBE's).