I remember sitting in the meetings leading up to the launch of the original xbox where they talked about the security features. They were quite confident at the time and it caused a bit of a shock when someone cracked it wide open within a week or two of it hitting the streets.
Personally though I think the fact that it was cracked made it a far more appealing platform, the mods turned the xbox into what it should have been in the first place and while I had no part whatsoever in that happening, I was quietly pleased when it did.