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I wouldn't cut it, because a lot of components use that while the system is off.
the power enable is what turns on the PSU to give it 12v. that would be your best bet
my buddy did this, but cut one of the pins going to the rol board, since without the rol board, it will not turn on
No. The RoL board (also called the RF board) is where the transceiver for the controller is. The 360 does not turn on AT ALL when the RoL board is not connected.