They are only offering C# and will only ever offer C# (or another .NET equivalent) because of the security model. In .NET you can constrain the user to the point that they are operating in a sandbox. Without this, you would be able to fully probe the address space and hardware and MS would never allow that to developers not under an NDA. Also, C# meets their design needs of a rapid application development environment, which is appropriate when targeting hobbyists.
Also everyone should recognize that MS cannot simply let homebrew apps be available to all 360 users for free (even under a different brand) because it could potentially break their business model. If there is enough software of high enough quality out there, people may opt out of buying games altogether and instead just download the homebrew software. That is a nightmare scenario for MS (and, indeed, any console manufacturer). While I agree it would almost never come to that, it's not difficult to imagine a scenario where it does begin to undermine their bottom line.
That would be unacceptable. There are only two ways you'll ever see homebrew made available to the masses:
- MS monetizes it somehow, so that they get a cut out of every homebrew download.
- The best homebrew is picked up and published to Live Arcade or Marketplace.
I think the latter scenario is both extremely likely and a smart thing to do. The former could happen, but there's a lot of legalities and licensing involved which would probably preclude it from happening.
The "Creator's Club" thing seems to be a middle ground where they can monetize it somewhat. The subscription element of it guarantees a steady revenue stream and also lets them eliminate piracy, since it's tied to your Xbox Live account. Granted, the sharing scenarios are awkward, but I imagine they'll refine them more over time.
And people, let's not forget that even outside the 360 dev scenarios, MS is releasing a rapid application development environment (based on Visual Studio) for PC games with sample source code and everything
absolutely free. Let's not let ourselves be blinded to that fact, because even in it's own right, that's pretty cool. Anything that lowers the barrier to entry for aspiring game developers is a
good thing and will only produce better class of talent in the future. Can we not all agree on that?