Wishbone: Well, that's what I fail to understand. It makes sense (in a certain way) that it can only run .NET applications, but as to what language was used to create them, I fail to see how that is an issue. And if it is, it must be artificially induced. I imagine that if you can even tell what language a .NET app was coded in from the .exe alone, it's only in the form of a property somewhere, and as such it shouldn't make any functional difference whatsoever.
Well I'm a long way from being an expert programmer, took me forever to get my awesome text adventure compiled and runing on the 360 but I gather that the difference and trouble between C++ & Managed C++ / C# is what is accessed from the OS core files, how things are executed and what level of hardware access programs have. From what I've gathered instead of saying "Hey hard drive, can you pass me that file?", it has to say "Hey .net, could you please ask the hard drive to pass me that file?" because .net is the only one with permissions to access the hardware so most of the operational code has to be rewritten to add that extra step
Mind you I could be way off but it sounds pretty convincing eh?