Its really not that big of a deal that we will never see Linux on the XBox - that really was never the point of the project. The point is, we don't want to see computers out there that will only run what Microsoft says can run on them.
Unfortunately, Microsoft succeeded. Watch for computers in the next few years that will only run signed code. Since AMD and Intel have signed on to Palladium, its possible that PC's in the future will no longer run Linux or BSD.
Its not enough that the tiny Linux community is against this. We have to tell our friends and families to unequivocally refuse the DRM-enabled products that are certain to appear in the near future. Nothing less than the freedom of computing is at stake.