There are just too many unknowns to form any conclusion. For one thing, we don't even know how MS determines a console is modded or not. Though there are alot of interesting theories offered on the net on how they do this, but until MS themselves discloses their procedure, which I don't think they will, they will remain as theories, no matter how plausible they may be. So without that ground, we cannot judge MS with any conviction concerning this. To them, they are simply protecting their intellectual properties, which is understandable. They might not be "TOO HARSH" in this regard, but they are clearly Financially Motivated.

As to their banning users because of their sexual orientation, it is indeed disgraceful and homophobic. Every human being has the right to express themselves, as long as they do it in a seemly manner, without any untoward behavior to their peers, then they are free to do so. MS clearly demonstrates discrimination, way beyond policing. That is a myopic view, not to be tolerated by anyone. In this, MS has gone beyond "TOO HARSH", to being "TOO inHUMAN"

Agreed.

I would expect no less from the likes of Sony or nintendo. Be it paid or free, there are terms we must agree to in order to use the service. The terms are there not only to protect the individual but also the service provider from any backlash that could arise from the offending of others and potential cheating that could ruin the experience for those who follow the rules.

I agree, there aren't any laws that makes it so lesbians can't go on Xbox Live...so why ban them?

The terms of service isn't there to do harm to them or keep them out it's more than likely to keep harm done to them. It's a different matter entirely when they put it out there for the world to know this, that's when trouble usually ensues and Microsoft more than likely tries to prevent that.

Now whether or not they should have been banned for that (at least to me) is up for debate. Perhaps a warning or whatnot is needed at most, but I think what Microsoft more than likely did was ban because they take into account that everyone should know the terms of service. If you break it (knowingly or unknowingly) you'll still get banned just because you broke it.

Unless I'm missing something where they state in the terms of service that you will be notified with warnings. Currently going through the Xbox live terms of service and here is what I've found:

"5. How You May Not Use the Service.

Create a Gamertag , avatar or use text in other profile fields that may offend other members. This includes comments that look, sound like, stand for, hint at, abbreviate, or insinuate or relate to any of the following: profane words/phrases, topics or content of a sexual nature, hate speech (including but not limited to racial, ethnic, or religious slurs), illegal drugs/controlled substances, or illegal activities;"

And I was going to go through the code of conduct, but it wasn't found for me ( just tried a few seconds ago ) Although I'm sure the gamertag part may answer some questions it certainly does not answer all of them. Though it at least states in it that sexual nature cannot be mentioned especially under the title of "How you may not use the service"

The Terms of service...too much lol.

Underrated comment. I used to hate that game so much that any time my siblings asked me to play it, I just picked Hom and shut myself down mid-match.