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It really doesn't matter what the reason for the mod is. It is no secret that if you mod your Xbox you lose access to the Xbox live service.
So it's a simple equation. If whatever you want the mod for is more important to you than the Xbox live service then go ahead and mod the Xbox. If the Xbox live service is more important then don't mod it.
As many on here repeatedly remind us, there is no god given "right" to make a living from one's creative efforts, that copyright is a new and "artificial" right granted by the law. Well so too is there no absolute right of the Xbox owner to access to the Xbox live service. If you want that access you play by Microsofts' rules.
Pretty simple really.
Cheers,
PKFFW
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