Can you provide examples that mention jail?
http://news.cnet.com/8301-13772_3-20021836-52.html
"Microsoft does not condone the modification of its products," a company spokesperson told CNET. "With Kinect, Microsoft built in numerous hardware and software safeguards designed to reduce the chances of product tampering. Microsoft will continue to make advances in these types of safeguards and work closely with law enforcement and product safety groups to keep Kinect tamper-resistant."
You can imagine someone somehow coming to harm and Microsoft getting sued because it a massive cash cow.
Of course this is being generous to MS and given past form I'm sure they will not hesitate to protect themselves from positive publicity and the possibility that people may consider the company to be cool and innovative ;)