That is true, as is what happens to all game consoles... the original Xbox started with mod chips, does anyone remember the "Aladdin 2" chips? I use to install these, and it modded the xbox to do such wonderful things. Since those times, they have figured out how to do everything I did with these chips in a software mod only... ending of a most profound time.
The same with the Wii, starting out with chips and hardware mods, now completely softmods. Soon the PS3 will follow suite, ending the need for any physical modifications, the end of an era. But fear not my friends, for we are at the dawning of a new age, with all new systems to exploit!