The OP refers to console bans, pertaining directly to MS online admin services detecting illegally modified hardware, regardless of whether it was illegally modified for the purpose of playing copies of games purchased and currently owned, or pirated copies of games not purchased or currently owned.
Not the same as an XBL account ban due to violations in TOS.
Technically, anyone with a banned console can use their XBL account on any non-banned console.
So in other words: shut it, buy a new console and don't illegally mod this one.
MS should/could prosecute anyone dumb enough to place their name on a class action lawsuit over inactivating their own console by illegally modifying it, assuming MS has a means of detecting illegitimate software being used on said modified console.
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