Most would say that, apart from the lag loading local content such as downloaded games thanks to the mandatory advertorials, the Xbox 360 New Xbox Experience (aka Dashboard Overhaul 2008) is an improvement over the original Blades interface. But the Blades UI was pretty cool too, and if you are really attached to it and have been keeping your console off Xbox Live to prevent the update, well, now you'll have to stop buying new games. Starting with HAWX and MLB 2K9, the dashboard patch will reportedly be included on game discs and will force the update when you launch them. This actually sounds a little like the PSP game disc updates, only those system patches were Sony's attempt to foil homebrew and at least they asked before installing...
I'm a little confused by this. It's not like Microsoft suffers from piracy. Sure there ARE people who have modded their Xbox, but not enough to make them do this. Why would they even do it? If you've been offline all this time why would they force you to get it? You're still not going to see the ads. It just seems like a waste of disc space.
Seems like a pretty pointless and ridiculous move. If people without Live prefer the old dashboard, I see no reason why they shouldn't be able to keep it. Simply making it an optional install would allow those without Live access to get the update should they choose to, without forcing them into it.