My Xbox LIVE account Perm Banned and it doesn't make any sense?

Well the problem is that it's not about actually doing it all the time. By your logic, if someone threatened to murder you, but didn't do it, there would be no need to punish them? Now you have to understand that they are trying to run a company. And they don't want it full of other people trying to make an easy and quick buck through cheap and quite frankly stupid methods (not to mention illegal) like you (no offense really). Permanently banned though it is a bit extreme, is the punishment people get for doing things like that that can ruin Xbox Live.