it may be bad for legitimate gamers but not bad for Microsoft. Now they have a chance of winning this gen if PS4 can't be hacked.

Winning in hardware sales would mean nothing if they sold no software. Look at the Dreamcast for example.

I hope ms finds a eye to stop this

Did the 360 win against the PS3?, the original xbox against the ps2/n64,  the Dreamcast against anything else?.

Piracy/homebrew does not instantly mean hardware sales success.

As i said in an earlier post, it will get patched and what you&ll end up with is a small number of users with modified systems spoiling new games before their release and hacked lobbies/games/etc effecting normal users.

Absolute worse case scenario, or "planned scenario" whichever tin foil hat youre wearing at the time, it can/will be used by Microsoft to bring back the drmbox.

Random fact, my wife made an ISO loader for the PS3 as a proof of concept for a security flaw in the LV0 bootchain via the hypervisor on the PS3, 5 months after its release, at the time Sony were still in their "head up their own arse" phase, so the two videos of it got posted on youtube, and she got a call back from them an hour later.

Actually, modding a console is not theft. Neither is copying software, or any other content. And even European courts agree, only American courts disagree due to heavy lobbying from interest groups like RIAA, and then try to muscle and force their jurusdiction onto rest of the world.

EU courts have ruled that purchasing a console constitutes transfer of ownership, and whatever is done to the console afterwards is sole discretion of the buyer. You can paint it, break it, tear it apart, insert new chipsets, remove features and of course mod it. It is yours.

EU courts have also ruled that copying content is not illegal, as long as a person does it for personal use, and receives no payment from other people. Therefore, you can download a game from the net, burn it onto your dvd and play it without any legal reprecussions. Our government in turn imposes a small tax on all blank media (discs, flash drives, hard discs...), which is then pooled into subsidies for content producers. 

Of course, Sony, Microsoft and whoever else have a complete autonomy on banning you from their servers, and can request anything in their EULA. By signing it you enter into a contract with the company, and that contract can of course include many limitations that are not illegal according to the government. Banning modded consoles is an example.

EDIT: Links --

http://www.gamesindustry.biz/articles/2014-01-23-anti-piracy-circumvention-may-be-legal-eu-court-rules

http://www.mup.hr/93636/1.aspx (sorry, this one is in Croatian - from Croatian Ministry of Police) but if you google translate the bottom part (below bulletpoints) you can read what I've written above.

xb1 is about to sell like hot cakes!

Public key seems kind of useless by itself?  That's why it's public?

I accidentally lose mine at Gamestop and accidentally get money from it. At least I still have my backups in handy...