Why not mod the dam machine - your machine - your choice - take a hammer to it iy you want - and if Microsoft claim that you dont own 100% of machine then give them their share of the pieces.
As for copying games - your choice - your risk. We all take risks - thats life.
As for playing online - give Xlink a go - no problem with mod detection here - you can play Halo online too
- Microsoft are the only group to offer online play for xbox games - take a look around at the alternatives.....
But most of all enjoy your Xbox.