Since there is no mute button for my setup I am used to just removing the mic cable from my controller when I want to mute.
Whenever the mic cable is removed from the 360 controller, the controller immediately shuts off and does not turn back on unless the XIM is reset by pulling the micro USB. Funny thing is, even though the controller ceases to function, the XIM itself remains working and keyboard and mouse still respond. It's just the controller that turns off (and mic chat ceases to work as well).
I think I used to have this problem with the regular XIM Edge as well, but it was pretty rare. On XIM4E the controller will shut off 100% of the time when removing the mic cable from the bottom.