Banned

So apparently in November 2011 MS decided to update their terms of use. I bought MW3 come home, and find out I am banned. Apparently in the new TOS they state they can permanently ban you for modding your gamertag or avatar. I made my avatar look like a ninja, he was blacked out, cap, ect... and they banned me for that since I modded him to be black. A few things here piss me off, and I figure MS can't do.

1.) Why is a skin tone for black not available, this seems racist to me that they do not allow this color.
2.) I have 7800 MS points, I don't understand how they can just take my damn money.
3.) The TOS was updated in November, I have not played in 2 months, therefor I never accepted these new terms, and I was given no prior notice.
4.) My friend was given a CONSOLE BAN for playing illegal backups of games, and his gamertag was left untouched. I simply MOD my avatars color, and I get a permanent gamertag ban.

This seems insanely unfair. Where the hell is Bill Gates? First The Pro bans me because he hated the tv show Teen Titans, and now this bull shit. I need to take this to court or some shit.

Thats Microsoft, and Ecksbawkes for you dude, shoulda just got MW3 for the Trey.

Service is XBL

14. Service Operation and Equipment.

You may only access the Service with an Authorized Device or by logging into your account via the World Wide Web. You agree that: (i) you are using only authorized software and hardware to access the Service; (ii) your software and hardware have not been modified in any unauthorized way (e.g., through unauthorized repairs, unauthorized upgrades, or unauthorized downloads); and (iii) we have the right to send data, applications or other content to any software or hardware that you are using to access the Service for the express purpose of detecting an unauthorized modification. You must not attempt to disassemble, decompile, create derivative works of, reverse engineer, modify, further sublicense, distribute, or use for other purposes the Service, any game, application, or other content available or accessible through the Service, or any hardware associated with the Service or with an Authorized Device. If you do so, we may cancel your account and your ability to access the Service, and pursue other legal remedies. We may take any legal action we deems appropriate against users who violate our systems or network security, this contract or any additional terms incorporated or referenced in this contract. Such users may also incur criminal or civil liability.

We reserve complete and sole discretion with respect to the operation of the Service. We may, among other things: (i) restrict or limit access to the Service; (ii) retrieve information from the Authorized Device and any connected peripheral device used to log onto the Service as necessary to operate and protect the security of the Service, and to enforce this contract; and (iii) upgrade, modify, withdraw, suspend, or discontinue any functionality or feature of the Service, any game or other content available or accessible through the Service, or any hardware or software associated with the Service or with an Authorized Device, from time to time without notice. We may do so by the automatic download of related software directly to your Authorized Device, including software that prevents you from accessing the Service, playing pirated games, or using unauthorized hardware peripheral devices.