Sorry i have been gone all day but to let you all know i spoke with DemonHades the other day before this was posted here and he told me this is repeatable on more than one console and is indeed real and and being done on retail consoles.
To be honest i would rather see the method withheld until something more can be done than to just decrypt the hdd.
Well, we have discussed all of that before in previous development posts.
Simply put, what stops is the "flags" in the EID, and we can not change said flags as the area that they are in are signed. So , even with a decrypted HDD (assuming the EID is stored on the HDD now, which it probably is not), the file would still be signed - useless to modify!
Still I think being able to decrypt HDD (and possibly add stuff in correct way) opens a door to many possibilities. Suddenly many people could start tinkering around looking for holes. I just hope this is not some sort of fake...