I don't really think him being autistic means much. I have an autistic family member, and he would know that was wrong. What I thought when reading that was that Microsoft seems a little harsh. They could give people a warning when it's a first offense.
Well, the reason they don't give chances is because hacking an account to get achievements isn't exactly an easy thing to do. A layman can't do it without special instructions. You can't just
stumble upon a cheat that gives you achievements, you need to be fully aware of what you're doing. That's why they take such drastic measures.
At least give his G.T back and his achievements before the profile was moved from the one 360 to the other one.
Why?
Just because he's autistic?
It's MS's way of Quality Control. It's no fun being on Live and comparing achievements if there's a bunch of cheaters running around, is there? He's clearly in the wrong. MS has been surprisingly lenient with him. I'd expect them to just brand his tag as cheater and just leave it at that.. The fact that they even listened afterwards is going above and beyond the call of duty.
Edit:
So, I have this video of 2 people cheating on a Free For All ranked match in Black Ops.
Both people are in a room, there is only 2 entrances to the room, one of them watched one entrance, the other watched the other. They are clearly cheating. How do I get Microsoft to brand them as cheaters?
Get everyone else in the lobby to report their Gamertag for cheating. 3 reports is all you need for a temporary suspension and a warning notice. Plus, the reason that case isn't as extreme is because once the match is done; they can no longer cheat. Achievements stay forever.