"What is the value of hacking a system to use it for purposes of which it isn't intended or designed for and why can't microsoft legally fight to protect its intended and protected interests?"
I have alot of stuff that I am using in ways that they were not originally intented, and because of they, those items hold a higher value TO ME.
"Value Add" is in the eye of the beholder. To me, being able to run Linux on an XBox as a cheap whatever the hell I decide to use it for is a "Value Add" to me. It may not be to you, it may not be to Microsoft, but it is to me.
Even though i modded my dreamcast and could play pirated games, i didn't consider this a value add. For one, i couldn't read the japanese games and often times it wasn't worth the effort and for pirated games they were ripped, chunked, slow and missing features.
Ahh, the jump to piracy. First off, if you modded your dreamcast to play pirated games, you're a fool, because Dreamcast rips are either self-booting, or you burn a boot CD for it.
Secondly, piracy is not the only reason to mod a console, and it wasn't the reason I modded my playstation 1. I needed that mod chip, but I don't have any pirated games, just imports. And just because you don't understand the Japanese doesn't mean it's completely useless to the rest of the planet.
So, to summarize, you did some stuff, didn't like it, and the rest of the world must now forgo it because you say so, and can't see the use of it? Um, Ok. Thanks, please drive through.
BTW, you mention the PS2 in the context of a dead console.. HUH? Dead? What? Excuse me? Please, stop smoking the MS Crackpipe.