@Burnin_TODI - that's another thing my husband suggested, putting it on a switch that you just turn off when not using. Can't "spy" or record if there is no power going to the device.
All that being said, I'm still not comfortable with the things it can do when powered on and the fact that it will be in the room of a 10 year old boy. Plus, he has a bad habit of losing interest quickly. So I think we will just wait for the 360 to take a dive in price and get that for him instead.....or rather...have grandmother do it.