The utility of Kinect is a physical piece of equipment. There's no service (although it may be used with a service), therefore there's no requirement to receive updates once hacked. Microsoft only gets one chance to deploy their defences: when the Kinect is in the factory.
(Microsoft could use the exact same scheme by bricking their devices with fuses when they fail some routine checkup; they could also brick every device and then issue a recall/reissue. They have better options than that, though).
What does it cost now?
(b) Limor isn't putting a bounty on pirating a game. She's putting a bounty on forced interoperability with a hostile proprietary peripheral. The bounty is great (even though I think "her team" will lose). I think it's kind of insulting to compare it to pirating games, which is indefensible.
They did something with consumer hardware that made tampering with it economically infeasible.
The exact same technique they use is available to Microsoft, should they be willing to pay to integrate and (more painfully) license it.
What Pay TV providers did to stop Pay TV hackers is an open secret, but I don't work in Pay TV and don't know exactly how "open" the secret is, which is why I'm dancing around this argument rather than just killing it with facts.