This is what makes me believe Microsoft is worried less about modded consoles. Even the people who have modded their consoles are still paying $40 or more per year for their live subscriptions, and TV/Movie sales alone are planned to bring in $92.25 million this year.... Some of that money is coming from owners of modded consoles. Now add the money made from Arcade Games, Themes, etc.
There is a substantial difference between Xbox Live for the Original Xbox. and Xbox Live for the 360.
Why waste time and money on trying to get up with the hackers, when you can put methods in place which will stop 95% of your owners. Your effort and money is better spent adding IPTV support, and other channels of revenue being driven through Xbox Live.
Just my 2 cents
damn, i could not have said it better - these accessory revenue streams are definitely outside the typical attach-rate model for gaming consoles and are really an unlimited opportunity for cash flow...