I haven't thoroughly studied what all the Easter Egg Exploit can do. In fact, as of this writing, I just got it working within the last few hours. It would be interesting to see if this could work with UDE2 so that UDE2 would be safer for installation (especially on kernels higher than 5713 where UDE2 is the only option), but unfortunately I doubt it just because the newer Microsoft XBE files probably don't look in the root directory of the C: partition.

I have since found that having an unauthorized C:\xboxdashdata.????????\settings_adoc.xip file WILL prevent the "Xbox Live!" service from successfully updating the dashboard to the latest version. "Unable to continue due to technical difficulties. Please try again later." (In at least one test, this showed up even after a long wait and some small amount the progress bar had become highlighted (increasing the amount highlighted twice, once from none to a bit, then to a little bit more).)