My Falcon hasn't had any problems. Thank God. *knocks on wood* Luckily I was a late adopter because the early models are very unreliable. An acquaintance of mine with a 2006 360 got red ringed three times. This time it wasn't under warranty. He had enough and traded in all his 360 games, traded in MW2 360, got a PS3 slim, bought MW2 PS3. Had I known he got red ringed, I would have told him to just get a $200 Jasper Arcade (Jasper chipset runs cool) and slot in his HDD. I told him about the Jasper after the fact but he insists that investing another $200 on the 360 was too risky (even though there is no data to suggest that the Jasper is statistically unreliable. On the contrary, there was survey data showing a failure rate of under 4%). Ah well, his choice. I get that Microsoft doesn't deserve a pass for designing a shitty console build during the early stages but Microsoft has taken the steps to correct this error. Sony has went through the same sort of growing pains. PS2's infamous disk-read problems, faulty Sony laptop batteries catching on fire (!! I believe this was a problem with Dell and some other laptop manufacturers as well).
Honestly, as a way to promote good will among the userbase and to make up for screwing up, Microsoft should extend the RRoD and e74 warranties until the end of the generation. Sony didn't extend the PS2 and PS3 warranties (despite the hardware issues) but Sony didn't receive the same degree of backlash and reputation damage. Microsoft got a lot of bad PR due to RRoD and it's still eating into potential hardware sales (to this day, the "don't buy the 360, it'll RRoD" mantra is being spread all the time. Even though it's common sense that the new cooler-running chipsets are going to lead to less heat, which leads to less RRoDs.)