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The hacking thing? It's an urban legend. No more. Altered controllers, and some people do alter them, don't need any form of modchip but offer a minimal advantage (if any). The controller rate limiting and so on is done on the Xbox itself.
And no, I think you mistake why cracking region locking is legal in Australia. It's because they tend to be lumped into "Asia", and get releases months after the US and Europe, if at all for many games. It's actually a consumer-friendly law.
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