All updates will stay server side apparently and patchs. You can also get the backwards compat updates via Official XBox Magazine discs. They don't plan on making any more games backwards though.
MS should be smart and get Halo 1+2 HD Remix for $40 up so we can get our Halo 1 and Halo 2 live fix.
Bottom line: All online servers go offline on April 12 (or was that the 15th?) and download content will most likely be removed (that seems to be the case as it has already been removed, I think this is the bigger bummer) to save money for MS via getting rid of all the XBox stat trackers, and supposedly being able to raise the friend list limit.
It's just that simple.







