I guess I'm surprised by how astonishingly naive some of you are being. Of course the Xbox isn't "unhackable", if you re-read my original post I *never* made that claim. Gates has been on record time and time again that his ultimate goal is to have basically every single CPU in the world running a Microsoft product regardless of whether it is running a super-computer or a toaster. And MS have been pushing *hard* (at least in Australia) to convert as many of their actual license sales into service contracts, which means MS gets paid the same amount of money, but after three years you don't even own a single license for anything.
MS is *very good* at what it does. Which is business, not software per se. The future they want to see is streaming PCs in every home where you pay a subscription fee *each* and every year regardless of whether or not you want any of the new features available. Their move into the Xbox market has always had a secondary object of giving them a better understanding of the hardware aspects of DRM then at the moment where they only know about software.
I like the fact that the same post somehow got me labelled as both an MS fanboy and a tinfoil M$ is evil.

This isn't random speculation, it has been stated time and time again that their goal is MS *everywhere*, and the only way to do that is to eventually build hardware that is so hard to crack that most people wont bother (especially with the illegality issues).