There's no guarantee that Microsoft wouldn't have specced the water cooler to permit the same load temps with a cheap, inconsistently installed block. Depending on the exact cause of the problem, it could have made things worse or not helped at all.
It was alleged that they were giving the Xenos chip and package very little thermal margin, and that Microsoft had taken lead on the design of the package used--an area it had limited experience with.
The temp fix was to add the thermal margin back in with a slightly better air cooler.
The final fix would wait until the chip and its substrate were redesigned, with help from engineering teams from AMD with more experience with issues such as thermal cycling.
Then they gave it an even cheaper air cooler.
It was alleged that they were giving the Xenos chip and package very little thermal margin, and that Microsoft had taken lead on the design of the package used--an area it had limited experience with.
The temp fix was to add the thermal margin back in with a slightly better air cooler.
The final fix would wait until the chip and its substrate were redesigned, with help from engineering teams from AMD with more experience with issues such as thermal cycling.
Then they gave it an even cheaper air cooler.