XBOX 360 Mod Chip Questions?

I am getting my XBOX 360 in a month and I am considering whether to put in a mod chip that’ll let me read burnt XBOX games.
But…
1. What are the disadvantages of it? (Anyone who says “It’s illegal” will be ignored…)
2. I live in Israel, will XBOX Live work for me if I subscribe to it? And what is the cost of Live? (I heard 50$ per year?)

Seeing as Israel doesn’t have Xbox Live, a modchip (illegal or otherwise) isn’t going be an issue about getting barred from the service as you can’t play on it anyway.

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