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You can't restore a Xbox hard drive like that. If your Xbox hard drive fails, you have to purchase a new Xbox hard drive because Microsoft puts in in a proprietary shell and I believe with custom firmware, and then download everything from Live again.
Technically, you're right. But, it is very possible to backup and restore a new hdd that is not branded for the Xbox 360. As long as you have a Windows PC, you can back up a 360's hdd. I know, I've done it multiple times, on multiple 360's, since owning the original white 20gb Xbox 360 when it first came out. It's not as easy as the PS3's on-board back up system, but the way it's done is pretty much the same, just done outside Xbox 360. I believe what you might be referring to is the Xbox Live backup, which actually does not back up everything. I just did an hdd upgrade with a friends slim 360, so I know everything is still the same and working. The things that do not backup consistently are download content, but are usually fixed through XBL. When upgrading(not really sure if there is a new method), you have to restore a copied firmware on the new hdd, then either use a program(on PC) or an xbox transfer kit to move data(if it's a genuine Xbox 360 hdd that already has the firmware running). This method is for using non-Xbox hdds, and is the way I've learned from XboxScene when the 360 first came out. If you already have an xbox hdd that is larger than your current one, you can just use the transfer kit. I always use the PC way because I can choose what firmware I want to start with, and I can get more consistent backups, as well as picking what I want to be saved in the backup. The 4gb stock slim 360 only needed a caddy and firmware update to use the new 250gb WD-Scorpio Black. I also tested a swap of the old 360's 120gb hdd into the new slim(pretty close to when the slim 360 first came out), and it worked perfectly.
Note: this does not void your 360's warranty. It also has no negative XBL ramification.