A lot of people got double-screwed when there were all those 360s failing. Not only did your damn console die, but if you had downloaded content like XBLA games, chances are it wouldn’t be on your new console when you got that. Until now, recourse has been difficult, but the license transfer tool lets you consolidate any licenses you had on your last four systems that died. However, I recommend reading the FAQ, otherwise you might miss stuff like this:
How often can I use the tool?
The tool can only be used once every twelve months.
Why can I use the tool only once per twelve months?
The tool is intended to allow consumers to consolidate their licenses they purchased on multiple consoles to a primary console. It is not intended to continually move content between multiple consoles.
Right. Because everybody likes artificial limitations on content they’ve paid for.