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Well, MP progress shouldn't be stored there, but usually on the publisher's servers or something. For example, Halo. If I got to a buddy's house and log in with my gamertag on his Xbox, I can put in Halo and have my customized character ready to go.
Also, that way you'll never lose your multiplayer progression/unlocks, even if something happens to your Xbox/HDD/save files for whatever reason.