There is an article at ARS about them.
http://arstechnica.com/gaming/news/2009/11/cheap-to-good-home-used-360-pirated-games-slightly-banned.ars
If it wasn’t for Netflix I would be very tempted to pick one of these up cheap to be used as an extender. Heck, I still might if I can find one locally.
And I am wondering if those local game centers can use these for LAN play.
And I wouldn’t doubt it won’t be long before the mod community can patch these systems or figure out something to do with them.