it's funny you say that. i'd fire the people responsible for the abysmal failure rate. Which ties directly into marketing, business planning and quality perception.
While I think we're all rightfully pissed off about the 360's build quality, I don't think it was a bad move from a business perspective. They cut corners to get the machine out in time, and it worked. They bet that reliability wasn't an issue that consumers care about (look at the PS2), and it paid off. Have the 360's sales really suffered from this? If they have, certainly not by as much as they would have by delaying the launch 6 months to design the console properly.
Meanwhile we've got the PS3 with stellar build quality, along with little luxury features like an oversized power supply and a user-replaceable harddrive, and nobody gives a shit. I don't like to say it, but if they'd taken the money they spent on that stuff and put it directly towards bringing the price down earlier or boosting the graphics card, Sony would probably be in a much better position right now.
At some point during the 360's early testing phase, somebody was probably told "You know, there's a design flaw here that's going to cause a lot of problems," and the guy responded "Screw it, we need to launch this year." He probably got a promotion, and not without good reason.