I have only ever played on Live once. That was when i first got my XBox and decided to play hockey. My phone rang...and pausing was disabled. I answered the phone not knowing how to tell the guy I was on the phone. Needless to say, I got a negative ranking as being "unsportsmanlike" ... so, to hell with that. I got better things to do online than take a "reputational hit" by a 13 year old. My XBox has NEVER played a game online being modded. So personally, the ban in my mind is not about protecting the integrity of the service as they say.
Beyond that, I have only ever used live to download content. A few hundred dollars worth over the last 2 years might I add. In order to get more, I have to buy a new box. And that doesn't even so much bother me as the fact that they have crippled functionality in the XBox inherent to the Xbox. They went BEYOND their mandate of "ensuring the integrity of Live"...what does the media center have to do with that? What does installing to the hard drive have to do with that?
They are merely trying to force people into spending more money on hardware by exceeding their so-called mandate.