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Besides, you can get a superior console (as in hardware...blu-ray alone could be considered) for not much of a difference in price

If I considered the PS3 superior, I'd have bought one. I could own both if I wanted to. To me it's inferior in several ways, which is why I bought a 360. The RROD is not guaranteed to happen and if it does, the console will be repaired for free.

As for car analogies, it's not like cars haven't been released with flaws and had to be recalled and repaired. MS don't need to do a recall because firstly it's hardly a matter of life or death if you're without a console for 2 weeks and secondly, not every 360 is guaranteed to be affected so why pay to replace consoles that might continue to work just fine?