Yes, and once a company like xim makes one, they can sell it and laypeople will buy it off the shelves. This method doesn't require any internal modifications or anything, that's the whole point of the adaptive controller.

The creators of the xim will want to make a new product to sell if their old one no longer works. It might even be possible with a software update.

Those off the shelf ready to use cheating products will still be there, they are just going to use a modified xbox controller instead of a third-party one because that's what microsoft allows.

The difference is Microsoft will now get more money out of the cheating products than before, not sure that sounds the right incentive but that's what is going to happen.

Those things cannot be fixed with software.

If this ban affects cheaters at all (after the next firmware update), the next Chronus could very well be a little box with a bunch of colour coded wires that you plug into an Xbox accessibility controller. All the cheater logic ("no recoil", mouse like precision on the analog sticks) would still work perfectly.