(and single player games have Trophies which is online so... depending on how much you value pixelated trophies? those would be affected by "cheating in single player")
Remember... this is Microsoft. The same company that had YEARS of bad press because bad third party drivers was one of the largest causes of windows crashes.
So even if you never play online (I don't either) and only play single player games (FF and similar games here)? There's nothing worse than a shitty controller to ruin an experience.
It's possible some otherwise perfect controllers might lose their spot if they get "banned" because they aren't "upgraded" with "security chips" (or whatever) and you might be affected but in aggregate its something a company the size of MS has to take into account.
We'll see how it plays out but I'm not surprised (after reading comments about cheating stuff used by others in stuff like controllers).