> “We anticipated that people would attempt to unlock the phones and explore the underlying operating system. We encourage people to use their Windows Phone as supplied by the manufacturer to ensure the best possible user experience. Attempting to unlock a device could void the warranty, disable phone functionality, interrupt access to Windows Phone 7 services or render the phone permanently unusable.”

In what way is that embracing? They can't legally prohibit it so voiding the warranty is the most they can do.