It's just another excuse for folks who really want a 360 but are terrified to get one. All of a sudden, reliability is at the forefront of buying a console. Pfft ... if that were the case, the Xbox and GC would have won last gen. Sure, it happens - but it's really, really exaggerated and PS3 worshippers will gladly throw that up like baby formula.
I had to send my 360 back before but I think my son running past it, snagging a cord and pulling it down off the shelf had a lot to do with it.
After some careful thought, if a gamer is really worried about buying a console and playing in fear, they are better off spending $399 or $499 buying a console that rocks as an HD movie player and having a peace of mind that one day there will be enough excellent quality games for it to justify its price tag.
Well, it may not have been in the forefront of your mind when buying your console, but it was in mine when buying mine. After much deliberation, my wife and I went for the PS3 over the 360, and reliability was a primary reason for this. The extra features have been really cool for the kids (as well as the games), so we're pleased with our purchase, and it has become a central part of our family life. Sure, many won't care for reliability issues when buying a console, primarily as most people are ignorant of them, but for those that do know, it is often an issue; at least, if I am to use myself as a guide -- and who else can I use? -- that would seem to be the case.
So, for me, not really, really exaggerated at all; however, it may be for you.