I'm the person the OP referred to, forgot I had an account over here from a few years back. I'm not going to get involved in any debates, all the details of my case are in the OP.
I'd just note two things:
1. I never accused MS of having security flaws in my blog post. I have no idea how my account got hacked. But it could well have been social engineering or something. My password was ok strength, but I did make the mistake of using that hotmail account lots of places on the net, so a hacker could have easily gotten the Windows Live ID and then either brute forced the password, or did enough social engineering to get the answer to my secret quesiton or something along those lines.
I'll fully admit I wasn't up-to-date on all the latest security stuff as I'm just not that tech savvy. So my frustration was never that my account got hacked, it was the amount of time it took to get it back, and then the BS with it getting banned.
2. I know my case is probably an extreme example. The wait time isn't as from what I've seen on the official Xbox forums, pretty much everyone who's account region got migrated to Russia, or Brazil etc. has had waits of 3+ months to get the account back.
Thankfully, they've disabled the migration feature so that won't happen to anyone else unless they decide to bring back the feature. And the Exceptions Analyst I spoke to said they have hired more people to work on investigations and are indeed turning around the non-migrated cases in 3-7 days now. Where as those where taking a month or so back in the fall.
My case just has the extra problem of the banning for violations related to trying to steal other accounts prior to my reporting the account stolen when it was migrated to Russia on Oct. 25th. As such, there's apparently no suspicious activity on my account prior to that date to generate physical evidence that my account was compromised earlier. And the PET team looked at it twice and decided to keep the ban.
That's all in my blog post, and there's really nothing more I can say. I certainly never tried to steal any accounts, and I never had any suspensions or violations on my Live account in the 4 years I had it prior to this hacking.
Anyway, I'm glad my story is getting some exposure. As I noted in the blog, I really don't care about getting the account back as I just can't support MS after this experience. I just hope this gets some buzz and causes them to handle any similar cases in the future properly.