Honestly I would like to be able to upgrade my hard drive, without being banned. Why? Because I would like to be able to put all of my games on the hard drive (disc-based and downloaded from the marketplace). I don't get into nefarious activities. I don't cheat in games. I don't try to destroy the online multiplayer experience. None of that has ever crossed my mind. To be able to upgrade your hard drive with being banned should be an option to any person who owns an Xbox 360.
Obviously there is a program that sends a code to the hard drive to check for anything illegal, why not just check for illegal programs that may affect online gaming on the Xbox 360? I don't generally watch movies on my xbox (the only time I watch a movie on my xbox is if I am too lazy to turn on my other console), I don't play music on it. I just game on it. I almost rarely get into the online multiplayer aspect of games, mostly because almost every lobby I get into, either has someone that exploit the match to their advantage or there is some whiny snot-noised brat playing with the big boys and using foul language they shouldn't be using.
Truth is, I remember when the first 120GB HDD became available, it was $200 (a ripoff) considering that the only difference from any other hard drive, was it had only a code to make it compatible with the Xbox 360 and a hard drive cage to fit it to the Xbox 360. By todays hard drive capacities and prices, it the 320GB were $200, a person could go online and find a 750GB HDD for $75; then take the 320 apart write the MS hard drive code on the 750, put it into the HDD cage, place it back into the xbox and have 750GB for $75 instead of waiting for Microsoft to make a bigger hard drive. But if that did happen, the standalone hard drive would cost between $200 and $500 considering Microsofts overpricing history.
TLDR; I just want to be able to upgrade my hard drive without being banned, because I didn't buy a Microsoft-branded hard drive.