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[thax]

I would guess that it controls what code is loaded and executed in memory.  It probably also has features which prevent moving the code pointer into regions designated for as memory storage, severly limiting the ability to exploit buffer overflows.

This means softmods would be very hard to do. In addition a hardware mod would need to circumvent or emulate the chip in some fashion, this may be very complex and difficult to do.

This is all wild speculation on my part, the devs would know if what restrictions the chip places on development, however they most likely will not be able to comment on it as MS wouldn't want people talking about this tech.