No, just no. How the hell can they even do that? And, more worryingly, how can anyone actually defend this? Are you people not reading? They aren't kicking you off that game, they aren't kicking you off of online MP, they are seizing all of the games you have on the console. EVERY BLOODY ONE! single player, local multi-player, anything where you press buttons and stuff happens, gone. Congratulations, you now own a $500 blu-ray cablebox. Because you said something mean over the damn internet.
You know, the real funny part is that actual hackers, as in people who are really good at finding and messing with software exploits, they will probably dance all over this shit. The regular people who at worst called someone a "dick muncher" or named themselves "BallsMcSlurp", and who more frequently will be banned because some 8 year old filed a complaint because you were better than them at cod and were therefore obviously haxxing, they're the only ones who will actually suffer from this.
Also, for people defending this, did "hacker' suddenly become the gamer equivalent of terrorist; a magic word a large, powerful authority can toss around when they want support for whatever horrible policy they're implementing? Because i remember pirates being the games-industry terrorist answer for any and all drm and service based business models. "Of course they have to monitor you, cuz pirates" "of course simcity should be always-online only, cuz pirates" "Of course the Xbox1 needs to call home every day and get permission to keep working, and you can't trade and sell your games to whoever you want, and Microsoft can straight steal your games, which are now licenses, whenever they want or whenever an XBL moderator can't be assed to pay attention to who they're banning, cuz pirates and hackers".