What will happen if i turn off xbox-auth in server.properties? since its already on client side... and whats online-mode and use-encrypt?
if you turn off xba, anyone can login with any names, local network, or someone using a localproxy to forward that, or server sided name changing plugin, or proxy hack, or hacked clients can login with any names
No, it's only required to join external servers that aren't part of your network. You can still join a LAN world or a PocketMine server being hosted on the same network that your on, without being logged into XBox Live. Using that, you can join a local server being used as a proxy, and then transfer yourself to an external server. Plus, you can play on external servers without being logged into xbox by using BlockLauncher, at least AFAIK anyways. If you turn PocketMine's xbox auth mode on, however, it verifys weather you're actually logged into xbox or not.
it's like saying but moral is forced upon these people by them self, thus it's safe to trust them to do their part to not forge identity of others, so a bouncer that is capable to checking and verifying that the user's identity is valid is not needed,(PMMP XBLA check) simply because you trust people are incapable of forgoing their moral duty to lying about their identity in order or archive their goals which may or may not be held higher regard then their moral