Originally Posted by MrBungle
this is wrong, wrong, wrong. if you pay for it, you own it. this is a piece of hardware, not some software license. Microsoft is wrong on this one. yet another reason why i prefer PC games. i own my computer and can do whatever i want with it.
You DO own the product, thus why you are able to modify it. You DON'T, however, own XBox Live as that is a server that Microsoft provides for you so long as you fulfill your end of the deal (money, not cheating, etc).
This is the way EVERYTHING works in life. If you don't follow the rules of a system, you'll end up losing your ability to use said system. For example, driving (if you speed, drive on the wrong side of the road, drive while intoxicated, etc you get fined and may lose your license).