What other items should corporations be able to confiscate (with a refund!) without your consent? Everything they sold you? If so, what would you have left?
But legal or not, the effect is the same - they took your stuff. Unless we do something, this, and the violations of other rights you signed away, will become ever more commonplace. Right to a fair trial is already heavily restricted by omnipresent mandatory arbitration agreements. The fact that it's totally legal is of little comfort.
After I wrote my reply I reflected that in this case MS is actively, directly depriving you of access to the your content, a required component of theft, but IMO if a refund is issued before access is revoked then the requirmemts for theft still seem unmet. I also feel customers should be free to circumvent DRM technologies... which would allow the market to help mitigate this type of decieptful, manipulative licensing of content.
Seems pretty shitty to not refund the device purchases though.
Folks don't want refunds, they want the item they paid for.
"Customers will receive refunds."