Sure they do. Lots of people like to make stuff for free, stuff that Microsoft wouldn't let you sell on XBLA, like SNES360 and Free Styles Dash...again, it's not illegal. It's called PartnerNet (what I couldn't remember before), and lots of these are not banned. I don't want one, and I don't need one. A JTAG'ed 360 is (arguably) almost just as good. Still, I think it's great that beginners can get something like this for cheap, make some nice programs the way that they want to, release them for free, then decide if it's something they want to commit to and go about doing it "the right way."