On the cable example, you're missing the point that the cable companies are allowed to fry (i.e destroy or take by your reasoning) the illegal box. The cable companies didn't provide those boxes, people bought them from third party vendors. Microsoft is actually doing far less here since people can still use their Xbox 360 to play legit games.
The wording was a little weird but I think he said they can't fry the box and television, just the box.
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