Is Xbox fraudulently banning consoles?

My un-modified console was banned as of September 3 2011. Xobx support has claimed that they only ban consoles with with plenty of evidence to prove that the console was in violation of Terms of Service (modified). My Xbox is 100% un-tampered factory condition and purchased new from gamestop december of 2010. Xbox support has failed/refuses to give one explanation for the banning of my console. I can guarantee that I have not violated any terms of service. Microsoft is has either made a mistake that they refuse to rectify or they are fraudulently banning a consoles insisting that new xboxes must be purchased. This ban has rendered my xbox worthless for the intent I purchased, making over a thousand dollars of investments to the xbox console, xbox games, and xbox accessories, worthless. Class action anyone? Microsoft stealing from 7 year loyal costomers?!?

TheMediaCows did a video on it. Its just like the RROD. They did it on purpose so you would get a new xbox.

Well hey, I wish i was in your shoes. I would have gladly had my xbox banned, than my 5 year account banned. That is why i am frustrated with microsoft. They banned my account, accusing me of stealing from the marketplace (which i don't see how one can even achieve), but left my console unbanned, so if i was stealing from them, i can just make another account and keep on doing it? It makes no sense, this recent wave of the banhammer is ridiculous and absurd.