A reader at Lazygamer has actually read the new terms and conditions for the Xbox 360.. and it's pretty scary
"Do you ever read the terms of service agreements that come with software, hardware and firmware updates? I know I don’t. I’m all too happy to scroll on to the end and click “yes.” One astute reader, liberty, took the time to read through the updated Xbox Live terms of service included with yesterday’s Xbox system update – and uncovered some pretty scary stuff.
Remember how we, via Microsoft’s Phil Spencer, assured you that Kinect wasn’t spying on you? It seems that might not be entirely factual; According to the terms of service, they can – and will use Kinect to monitor players."