It's two pretty different cases though.

On the one hand, hacking Kinect won't allow piracy of games, therefore, MS are fine with it. In fact, it may actually improve Kinect sales. With Win Phone 7 they're effectively trying to prevent any potential for piracy by bringing hackers (or just GeoHot in this case) on board.

On the other hand you have Sony and Apple where the hacks actively allow for piracy to occur, even if the original intention is for homebrew applications.

If anything happens that allows software piracy instead of just homebrew apps, then you can bet MS would do a full 180.

I don't understand why so many can't understand why Sony and Apple are up in arms about the dev community while MS isn't in regards to its WP7, whereas its just as aggresive on the X360.

Software.

Sony and Apple both create a lot of software on their hardware that they intend to generate money from. MS doesn't care if people open WP7 as its money is from the licensing of the OS to the hardware makers. Having WP7 open like a barn with no holds on the pirating doesn't affect them at all.

Its also not like Windows as you're not going to build your own phone and buy a new OS. The phone itself will only get the natural upgrades that all smartphones get from their OS maker ... (except Samsung's Galaxy S phones...)

So yeah MS can seem like the good guy by embracing the dev community (which Google has always done btw... hence open source) even while they are just as anit-open and anti-piracy as everyone else in every other market they are in.

This is all BS and the touting of MS in this case is cherrypicking and ignorant.