The 360's failure rates are bad enough; why does customer service have to be this bad?
http://arstechnica.com/journals/thumbs.ars/2007/2/12/7002
There are thousands of examples, google is your friend. People upset that their DVD drives aren't fixed for free, people upset by disc scratching, people upset about receiving back old launch period refurbs while their hardware is only a few months old, etc.
You don't make things up, personally I also had a bad experience with XBox customer care but that was before they warranty extension announcement.