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Not rewarded? People are writing off the PS3 because it's so far behind in sales and has a smaller game library, without taking into account the year that Microsoft was selling consoles with no competition and building up a library of games.

It can become a self-fulfilling prophecy if people decide to buy a 360 because they see the PS3 as failing.

Another point about the failing consoles: If you've bought a few games for a 360, it's not as simple as just selling your console and moving on. You still have all those games, which probably don't have much resale value. As long as the repairs are free, people will go along with it just because they have so much invested in the games (not to mention time, if they haven't finished the games yet!) If I had to choose between sending in my broken console 10 times or having to start over in Oblivion, it would be a hard choice. :)