So I guess the Microsoft control freaks won. No mods. No user created content (at least as we have come to know it in PC land) for the foreseeable future.

I guess I can kind of understand Microsoft's fear. They don't want to take any risks with their precious Xbox Live. It's one of the major advantages they've got going. It's a great marketing tool and its the one piece of tech that will carry over to whatever hardware platforms Microsoft has on the drawing board. Perhaps it's best not to rock the boat at this point by opening the floodgates and maintain present course.