It's funny, but honestly when talking about the price of the console in question not to mention any LIVE time that was effectively cancelled without refund... I'm not sure if this wasn't a bit harsh.
Questions come about as a result of this like if the guy was ever warned, if the kid was underage did Microsoft call the parents using the phone number your supposed to provide (and honestly if they took the time to ban someone like that, I'd imagine taking 5 minutes to make a phone call is not unreasonable).
Don't get me wrong, I'm not exactly saying the guy didn't deserve it, but when money is involved, even a little bit, I become VERY wary at someone being able to spontaneously deny service.
While I don't doubt that the kid did it, think of it this way: can Microsoft prove it? If they can't and don't have to provide proof, that opens a lot of nasty doors. What it means is they could just ban people off hand and lie about it for whatever reason. While "The Pro" behaved perfectly in his "incident" with "Itzlupo", what if the situation was differant? What if a Microsoft employee uses the abillity to ban offhandedly for their own personal gratification? Ban your rivals, ban people you don't like, heck take money from people to ban people THEY don't like.
I mean heck, they could probably ban someone and say "your banned for attempting to seduce a young child" or some weighty thing, and never have to worry about proving that claim. Even if it was BS, I'd have to really worry about fighting it beause simply by raising a question I'd be liable to be added to all kinds of watch lists and possibly have my life ruined just by being accused once it went public.
Agree or disagree, the bottom line is that the "lulz" here is mitigated by the potential for abuse.