A 0.1% failure rate on a complex consumer electronic piece of equipment like the PS3 is statistically impossible. I know you just pulled that number out of nowhere, but I can't recall anyone actually claiming it was that low.
Generally, a 3-5% rate of failure is considered acceptable for A/V type equipment. For computers (which the Xbox and PS3 are), those numbers are both higher and a lot less static than they would be for something like a DVD player, meaning over less time, you will continue to see greater rates of failure.
Laptops for example, have an average lifespan of about 3 years before failure. Seems a bit low, but if a given laptop was used regularly on a daily basis over those three years, it doesn't seem outrageous. What can skew that data is when an older laptop is supplemented by a newer one and the old one is relegated to low use, reducing the average regular run time. Naturally, if you stop using an old laptop altogether, about the only way it will fail beyond then is when the battery no longer holds a charge or it's intentionally broken.
Eventually, there will be better info on what the real rate of failure is on the PS3 although my guess would be for those older 60GB units past 3 years, eventually all of them are going to fail at one point if they continue to see heavy use.
Under 2 years though, is really pushing the line on how long something like a computer should last, even if used on a daily basis for extended periods of time (say 40 hours a week, which over three years would be well over 6,000 hours of run time).
So the original 40GB SKUs from late 2007 really shouldn't be failing at a rate greater than 5% if QC was within lower ranges. I have a pretty good feeling that it's actually quite a bit higher than that though.
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