Australian Xbox hackers have threatened to release the private Xbox keys unless Microsoft digitally signs a Linux bootloader so that it can be run on the Xbox without any modifications. If released, the keys would open the door to widespread game copying.
If Microsoft agrees to release a "signed" Linux boot loader, allowing Xbox users to run Linux officially, then the group will shelve the technique for installing it that they have formulated. If MS does not then the exploits will be released in a matter of weeks.
The advantage to having an official release of a boot loader is that it will not allow the console to run pirated software. The group says that its method does allow for piracy, and that Microsoft has the chance to stop this from happening.
(Thanks, Random!)