It's a myth that no has been banned for playing backups since GoW2. It still happens. I've seen users on the internet complain about being banned for played pirated copies all the time. It's just not happening in big waves. Though that may soon change when MS announced on twitter the permaban hammer was coming after seeing a whole bunch of IDIOTS playing ODST before the release date. Obviously the scene still exists but 360 piracy is no where close to what it's like on the Wii, PS2, DS and PSP, which are all pirated to hell.
As for the warranty sticker thing, I'm not sure how things are in the UK but in North America your warranty sticker has to be there in order to get it serviced. And putting the sticker back won't guarantee repair service if they notice you tampered with it. Like sure you'll run into lazy MS employees who don't give a damn to check but I'd find it hard to believe that none of them would check the sticker.
@averyblund Piracy does not win console wars. Pirates may buy the hardware but third-party developers won't be interested in developing for a console that can't shift software (and pirates naturally don't buy the software). And if you don't have support from third-party developers, you're going to lose no matter what. PS1 and PS2 were heavily pirated but their overall software sales were much larger than the competition in their respective generations so it was worth it to third-party developers to develop exclusively for the Playstation. Sony won the war because there were enough people willing to buy the games. Not because their systems were easy to pirate.
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