Due to the lack of BC updates on the XBOX 360, Peter Moore, a Microsoft Official, was asked whether or not backwards compatibility would stop being done on the xbox 360, Moore basically stated "Yes, it could happen sooner than later. This is a very hard job for our engineers, trying to emulate each and every game. Some of these games are several years old, and we will eventually stop working on it. Gamers just don't want backwards compatibility. We've lived up to our bargain."

Update:
Moore Reiterated his commitment to BC on 360. Moore went on to explaine that the comments he made that "nobody is concerned anymore with backwards compatibility."

He goes on to state "My words - that nobody's concerned about backwards compatibility - were misinterpreted as no one cares about backwards compatibility. That's noe the case at all. I want to be clear that my comments were not about nobody cares - of course we care, and we're going to continue to try and get as close as we can to our stated target of every xbox game being backcompat to the 360, and I'm hopeful we can get there."

Wishy washy? or a common misunderstanding..

I still have my regular X-Box so i don't care about backwards compatibility. and i know i am not alone on this.

I have an xbox as well, but I was hoping to replace my xbox with the xbox 2, but I suppose I will probably just keep the original xbox but maybe let my younger siblings use it at their place heh..

I'm going out today to buy an xbox 360. Hopefully, there will be some stores around that has the premium system in stock. Probably also going to get enchanted arms, possibly dead rising.. already ordered oblivion, moto gp 2006, and battle for middle earth 2 on ebay..