It seems Microsoft is finally cracking down on people with modded Xbox 360’s after letting them get away with it for almost a year. Basically, they are looking for any modded DVD-ROM drive so it does not matter what firmware you are using.
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I’d say this is a good thing, and if you want to play on a universal system like live then you can’t screw around with the hardware you use to connect to it. I’m not making some moral statement here about using back-up copies, but if you break the terms and you get caught, you can’t really complain about it.
I wonder if this will convert anyone over to a PS3 as live is basically the main selling point of the Xbox 360. I guess it doesn’t matter if they were not paying for their games anyway 
Yeah if you are stealing content then you cant complain too much. And you know what you are getting when you buy it so you really cant complain.