Well modders are already working on restoring those banned x-boxes:
http://www.dailytech.com/article.aspx?newsid=16823
they are also working on stealth firmware that could bypass detection.
Then again I don't really see how MS would be profitable from million of people buying X360 arcades (as they already have HDDs etc) as that model is still rather minimal profit if it gives profits at all. Hell they would be even damaging their profit from accesories (as that's 1 million of additional X360 pads thrown into circulation).
Only effect could be on the PR front bumping the number of consoles sold (but it's unknown how many of those pirates would buy PS3/Wii instead) and to show Activision they fight with MW2 pirates.
PROUD MEMBER OF THE PSP RPG FAN CLUB
