I’ve never been one to play competitive online games since I have the hand/ eye coordination of a house plant, so I can’t weigh in on the advantages of blocking controllers that are “unfair”; but as someone who hated button mashing “A” in Animal Crossing, I can say that custom controllers can definitely have a place with a console.
In my opinion, this feels like Microsoft simply wanted more licensing money and is doing it under the guise of fair online play. It reminds me of Apple locking faster charging and data transfer on USB-C to their own proprietary USB cables.
Hopefully this does not negatively affect too many people.