In all honesty, I am not even worried about the 360 being 'hacked' or 'modified' at the moment. You can play Media the same way as XBMC (loosely) but you can do it. DVD Backups are playable on there too, this way I dont scratch up my originals
And the biggest feat why I WOULD want the 360 modded would probably be for *nix OS on there. Emulation is great to, but beyond that I am satisfied with the console ATM. I have my other box to do the things I want on it and it works for now @ a price of $99 used. Cant beat that.