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MikeB said:
10 user complaints (top, IMO):

1) RRoD
2) Disc scratching, other drive related technical issues.
3) Noise generation
4) Bulky external power supply,
5) No default harddrive (limiting the advantages to have one)
6) No free online play, need subscription. Yearly costs.
7) Pretty horrible DVD movie playback quality for an upscaling DVD player.
8) Low quality audio for audiophile standards.
9) Too many non mainstream upgrades. (Wi-Fi, MS 360 specific harddrive, MS headsets no standard Bluetooth phone headset, contoller battery packs, etc). Still not really on par after upgrades.
10) No Blu-Ray movie playback support.


Dev tech complaints:

1) No default harddrive.
2) DVD space too limited.
3) Not enough EDRAM, subHD ideal resolution to get the most out of the hardware. 600p sweetspot.
4) DVD reading speed not constant, inner rings very slow.
5) Main RAM shared between GPU and CPU. (Bandwidth)
6) L2 cache shared between all 3 CPU cores. (latency)
7) Closed Dev tools not supported by alternative platforms other than Windows.
8) Not enough XBox Live flexibility.
9) Limited for distribution of free content and larger file sizes.
10) M$ XBox Live subsciption needed for full online user experience.

 All but the bolded are legit.  MS never said they would have BR on the 360.