Assuming all kernels can boot the uberdash xboxdash.xbe as xonlinedash.xbe, that is indeed the most functional solution. However, this means the real xonlinedash.xbe (x2onlinedash.xbe) needs to be patched to checksum msxboxdash.xbe instead of xboxdash.xbe and to read fonts from say c:\xodash\f0nts\
If all that works, then we have full live console access + friends list/auto login functionality without any switching needed.
I doubt that network settings via the msxboxdash.xbe would work since it calls xonlinedash.xbe (with is infact the uberdash xboxdash.xbe) and if dashupdate runs you cannot get to the live console anymore (pressing B to go out of the auto login/friends list screen causes error 21, so you cant press the live tab)
Still, it's the safest way, since the softmod itself will stay intact, friends list/live play will stay intact and pressing the live tab doesn't cause the box to hang.
Perhaps patching the 5960 dash/msxboxdash.xbe to look for its support files in say xboxdashdata.hacked, then fuckms'ing it would allow us to avoid update problems all together, leaving us with only 2 minor disadvantages: network settings via M$dash dont work, and getting to the live console requires some finger dancing.