Ethical: Developers lose revenue; community trust erodes.
Safer Alternatives
RGH (Reset Glitch Hack) on Slim/E: External HDD boot, slightly less invasive, but still bannable online.
Xenia Emulator (PC): Legal, plays ~85% of 360 library at 4K/60fps on modern hardware. Requires game ownership.
Backward Compatibility on Xbox One/Series: 600+ 360 titles run natively enhanced.
Verdict
Modding offers freedom but at legal, security, and ethical cost. For preservation/emulation, Xenia on PC is the responsible path. For online play, stay stock.