From what I understand the next Xbox isn't going to be x86 at all. They are aiming for PowerPC platform.
x86 was never designed to be secure, it just takes to much effort and time to redesign everything. They thought they had Xbox hacker proof, but obviously failed miserably. PowerPC is legacy free and most people are unfamilar with it, so they want to use that for the security thru obscurity method.
Which will obviously fail, but combined with other technics to harden the system they figure it might be enough to protect it.
After all not to many poeple are hacking the Nintendo gaming cube, right?
The 2 things nintendo did differently was to base it off of a PowerPC platform and use propriatory disk technology. Right now you can modify the Xbox to download games off of the internet and run it straight off of the harddrive, nobody is doing that with the Nintendo game cube, are they?
So again MS failed miserably to make a cheap product that is hacker proof so they copy off a company that got it right the first time.
Most of the signs point to it. They are bought out a virtual computer that runs x86 software on powerpc's (a example would be windows CE on PowerPC-based stuff), they are looking to hire someone with anti-piracy experiance that can create propriatory data and are tired of people ripping them off by taking cheap computers they sell at a loss and making linux computers out of them.