Overpriced yes, misleading no, I know I'm gonna piss off a lot of M2 enthusiasts by saying that, sorry in advance.
I believe what modchip.ca was talking about was the need to cut the track in the earlier versions of M2's. Although I do find it funny that they claim Magic series chips are now totally reliable, only the newer versions of M2's have been 100% no problem either. It's a push and pull situation, both at one time had their disadvantages, one with the need for a track cut and the other with freezing and DVD9 issues, now though the newest versions of M2's will outperform the Magic 3.1's. I believe the real reason modchip.ca is selling magic's is simply because they are cheaper so they can make more profit by charging the access on consumers, BUT at least with them you know you are getting an official 3.1 chip, the only other seller who you can trust like that is Rewen from backup-source.
-US Nintendo Wii unmodded (waiting for modchip and install)
-US Playstation 2 v15 SCPH-77001 w/Crystal Chip Pro 2.0
-US V1.0 Xbox w/Xenium Ice and X2 custom BIOS