360 failure rates are always going to be high because of the older models sadly. From the newer models I've read/heard no problems from online friends and local friends alike, but the test is still if the console can last atleast 3 years without any major problems, and it hasn't been out long enough.
I'm suprised by the PS3 failure rates, though my friends launch unit just died. Still not close to the 360 failure rate but thats way too high.
Good for the Wii, though my launch title has the "dead pixels/graphics overheating" problem that Nintendo won't fix out of the one year warranty.
It's just that simple.