I do not know if this is sensationalist, but that is exactly what Microsoft is reported to have claimed about the ChevronWP7 jailbreak/unlocker application that we wrote about yesterday. To tell you about the application, it is a Windows-based application that can enable users to sideload non-Marketplace apps on to their WP7 phones thereby bypassing the App Hub.
According to a statement from Microsoft, the unlocking could “void the warranty, disable phone functionality, interrupt access to Windows Phone 7 services or render the phone permanently unusable. We anticipated that people would attempt to unlock the phones and explore the underlying operating system. We encourage people to use their Windows Phone as supplied by the manufacturer to ensure the best possible user experience”
However, the developers of the WP7 jailbreak app have claimed that these allegations are false and that ChevronWP7 makes use of the same procedure that is used by the official phone registration tool.
We really do not know who to believe, so we leave that part of interpretation to you.