Check this out, and take it how you want. Apparently they are thinking about making the right analog stick more precise..
"Get More Control Over Your 360
Microsoft exploring 'advanced' Xbox 360 controller options for FPS and other precision-heavy genres.
by IGN UK Staff
UK, August 15, 2006 - In the eternal battle between PC and console gamers, the formers' trump card will always be the control precision offered by a mouse/keyboard combo when compared to traditional console controller configurations.
Acknowledging this, it seems Microsoft is hard at work on an 'advanced' controller for its Xbox 360, designed specifically with the needs of precision-heavy genres like FPS in mind.
Speaking at Gamefest 2006, as reported by Shacknews, Microsoft's product unit manager for hardware, Robert S. Walker, noted that the company is currently investigating ways to modify the 360 controller's right analogue stick, offering a greater degree of precision in genres where accuracy is paramount.
Re-confirming that Microsoft has no plans to enable keyboard/mouse support in its 360 titles, Walker stressed that any such 'advanced' controller upgrade would exist in addition to the standard 360 model.
However, as of now, such a device is merely under consideration at Microsoft, with no concrete plans for release currently in place."