Well, he wasn't entirely lying to since there have been other hardware related problems with the platform, but many of those have already been sorted out like the DVD drive mechanism (scratched discs due to the absence of bumper guards in the drive) when MS switched to BenQ drives, which are also much quieter than the original Xenon 360 drives.
There have been issues related to the PSU (power brick) overheating as well, but most were due to consumers keeping the PSU on carpet, or tucked away in a dusty environment where the unit couldn't ventilate. This is important because the power brick has its own internal fan (it needs to keep cool to function properly). Most people are unaware of this because virtually all other console PSUs do not use internal fans. I don't know if the current 175 watt units still have the fan since they use less power than the 203s, but it has been one of the hardware related problems with the 360.
But the main system killer is by far the RRoD, which again, is covered by MS for 3 years.
At the very least, you've bought the convenience of being able to immediately replace your console in the unfortunate event that you become a statistic.
Of course, if you're fortunate, you'll never have to experience the joy of consumer product replacement that many like to joke is a part of the Xbox 360 experience.
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