You missed my point ... look closer at the statement ...
if I did it, they wouldn't know, anyone with programming experience can get away with it, no matter what they do.
The ones they are punishing are not the people who are really doing anything wrong, thus the backlash through emails and phone messages 
anyone with real technical knowledge would respond (if they bothered) with something a little more dastardly. I would give out tons of the hacks across the globe if I cared enough to actually play v-games like those. True pirates would send viruses to the network in a flash. Tech geek v-gamers who did care would likely hack the server and mess up every account, just for shits and grins. No, these people phoning in and emailing likely bought their X-Box from someone who was bored with it or needed some spare cash, they are most likely not even the ones who made mods to them in the first place. But meh ... this will likely boost Playstation's sales and Nintendo's as well, which is cool. Nintendo is nice to us programmers, they let us emulate their old systems so people will be encouraged to buy their newer ones for game sequels, and Playstation not only lets us create emulators, they give us the libraries to make games for their systems ... for free. So meh ... the less popular Microsucks is in the gaming world the better games will be.
All that aside, emulators are not illegal even if the company does not allow them, logging onto their server with one is not illegal but a break of their TOS only, yet ... in the hands of a coder, they would never know the difference.

Just most of us coders are too busy making the games to bother.