M$ banning smart or not

I read threw this, and it is asking the same questions I have been asking. I always browse threw my local craigslist on the hunt for good deals. I've noticed as of lately the huge flow of Xbox 360's for sale. I post once a day describing what M$ has done and to test that the box will go on live.

Microsoft has moved to Phase 2 of its crackdown on players using & abusing their Xbox 360s, according ot Xboxic, Gamerscore, and others.

The first prong of this effort was to hunt down Game Save copies and disable them (see previous article). This is a nuisance for sports games and a problem for user-created content... but not fatal.

Yesterday, the big guns dropped. Microsoft has used the latest Xbox Live service update to detect kernel mods and unauthorized hard disk upgrades (no word on whether it catches the malicious DVD drive replacements that exposed a major piracy problem last spring and summer) and ban them from Xbox Live.

The choice has been to ban these people's Xbox 360s based on its console ID, not the player's Xbox Live account.

So, I guess if you want to go buy an Xbox again, you can start playing again?
Steve's Ban Circumvention strategy? (PlayNoEvil would, obviously not do anything so... evil)

So, what is going to happen:

1. Banned player sells banned Xbox 360 on Ebay.
2. New player signs up for the totally cool Xbox Live service that he heard so much about.
3. Gets bounced.
4. Calls Xbox Live Customer Service.
5. What will Microsoft do?

A. Reinstate the machine?
B. Tell the person "tough luck"?
C. Both, at random.

If they reinstate the box, this opens up the lazy circumvention strategy of skipping that whole "sell on eBay" thing and just try to get reinstated.

If they tell the person "tough luck"... Microsoft is going to have an UGLY CUSTOMER RELATIONS PROBLEM (followed by some nasty stories in the news) which should lead back to Answer A.

Even stupider option for Xbox Customer service - tell the naive purchasing person to "fix" their Xbox so that it isnt' hacked anymore.

I tend to argue strongly against banning. It is directly expensive and can have "highly entertaining" unforeseen consequences.

Also, if Microsoft hits "critical mass" with its banning activities, it may encourage the creation of a "guerrilla Xbox Live" that could spur further piracy.

What should Microsoft do? That is at least a 3 beer question.

News-Source: http://playnoevil.com/