But I'm not debating the stupidity on MS' part, or what's right or wrong.
This is why the victims are mad. No one has claimed responsibility to fix it. And no one has said they can/will stop it.
All they see is their money have been taken, and they didn't get phished or social engineered. If there is a way in via Windows Live ID, then XBL needs to block fraudulent logins. Both are MS's systems. If XBL's customer service agents got fooled by the social engineers, then MS is responsible. If the customer service agents forgot to lock a compromised XBL account, they are responsible too.
Despite the user info theft on PSN, most users' accounts and $$$ are intact. Debating that one of the locks is not picked while the money in the safe is already gone may not be sufficient.
But people claiming "Xbox Live got hacked' are factually wrong is all I'm saying, which is why Microsoft won't admit that it's been hacked. Because it hasn't.
Whether that's right or wrong is another discussion all together. MS trying to fix these cases individually makes more sense from a business and publicity standpoint don't you think?
Why admit to something that technically isn't true when you can try and fix it under the carpet and save public scrutiny? It makes more sense for them to do what they're doing. Especially given the relatively small number of users this would be affecting.
Think about it, if this is affecting say 1 or 2% of total worldwide users, why would MS come out and say "Xbox Live has been compromised?" Makes no sense.