I may have the best idea yet simply because it combines all the other ones! Chop it into at least 4 pieces with a chainsaw and do different things to each piece e.g. piece 1 = hammer, fire, jump up and down on it, piece 2 = thrown off top of house, thrown out moving car, run over in car, piece 3 = thermite, explosives, piece 4 = viking funeral using a raft covered in petrol/other flammable liquid and guns that set fire to whatever their bullets hit. Optional bonus, gather up all the pieces you can after all of that and do one of the following 1. reassemble and sell on ebay 2. send pieces to microsoft with a cd showing what you did to it and why (and maybe say you are switching to a ps3/wii) 3. melt it down and put it on a stand (or something) and show your friends (or send it to microsoft with the cd). What ever you do, video it, put it on youtube and put a link here to it.
Real life idea: sell it on ebay or trade it in or just get it repaired again.