All seems reasonably likely, with a launch in first half of 2013 being likely and November 2012 or 2013 being the earliest and latest. I worry slightly for MS if they do make it that powerful, but I'm sure they'll pull through.
MS didn't plan for RROD to happen (I don't think anyway!) but they started making profits in the E&D division in late 2007, that was with the 1 Bill RROD pay off earlier that year. I think MS made the 360 break even/profitable relatively early.
With people still paying for XBL on the 360, any losses on 720 can be offset. So I think they'd be willing to take a loss. They regularly making about $600 mill in the E&D per Q now.