They didn't catch everybody LOL. My two neighbors who created thier own mod for thier systems are still playing online with pirated copies of MW2 for their 360. While I admit NASA engineers are usually rather bland, these two are roflcoptering at the 1 mill that got banned. Their quote "AAAAANNNNDDD that is what chinese engineering gets you."
I'm so happy, I think i'm going to cry. So did everyone that had a modded xbox get banned. Did you have to be logged into xboxlive that day to be banned? I have a few "friends" that have modded xboxes. They always called me stupid for buying games(this is why I hate pirates). If they got banned I'd love to say "who's the stupid now" ahaha (I buy all of my games on craigslist. COD WAW for $10. Why would I pirate)
The risk was always there. I've never really understood pirates who try to play online. Pirating a game so that you can play solo on your computer is one thing but trying to play online with it just seems a bit silly because you're so easily traced.
I am perfectly fine with people with pirated content getting banned. If by some chance a poor soul who wasnt willing to pay 100 dollars for a 60GB hard drive got nixed in the process because he "modded" in his own I would think MS were @$$holes.