It's a hard problem to reproduce though. My 360 gets a disc read error without fail whenever I try to enter Acre in Assassin's Creed and the disc I had before that kept crashing in the kingdom area, but for most people it isn't a problem. Likewise, my Mass Effect has been flawless while you've had many errors. So telling Microsoft the game is unreadable doesn't help much, because it's entirely possible they could test it on all their machines and have no errors.
It definitely shouldn't boot you automatically to the dashboard though, an option to try and read the disc again would likely reduce the problem by a massive amount.
The install option is a sensible idea, with the only real problem being that there are a lot of systems with 20GB drives (mine included) and some without a hard drive at all. Developers can't make any assumptions about a hard drive being present so they would still have to code it entirely to be able to run on a Core system.
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The poster formerly known as Macho Man!
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