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I'm sure MS would design a slim model and completely ignore overheating or the problems that have plagued the 360 in the past.

Because MS is run by Sony fanboys.

Also if they did it would not be copying Sony as I remember the MegaDrive 2 was a slim MegaDrive so I guess Sony copied Sega.

People wondered how the MegaDrive 2 would connect to the Mega-CD1 but Sega found a way so I have no doubt MS could find a way of getting the 360 HDD to work in a Slim model.
Maybe have the 360Slim lie flat and the HDD plug into the top?