It seems like way more work than it really is, it’s actually pretty simple. There are a couple payoffs, however:
1) due to the cluster size of drives being used and how the Xbox handles, anything under that cluster size still takes up the amount of the cluster size. Say you have a 2TB drive; you have to have 64k clusters here. Every single time you write a game file to the drive it’s going to take 64KB, or whatever the actual size of the file is if it’s more than that. Doesn’t sound like much but games can have hundreds or thousands of tiny files and it adds up.
Also some games don’t play from the HDD at all due to file names that’s are too long or specifically reference files in the disc drive. IMO, it’s easier to run them as ISO than bother setting up the patches or finding them for that matter.