Attach rate is in no way bad, none of those arguments make any sense to me.
Whether or not hardware sales stall is unconnected to attach rate, so obviously you'd rather have a high attach rate if hardware sales are slow than a low attach rate if hardware sales are slow, that's a no-brainer. If the point is that the combination of high attach rate and high hardware sales is better than a high attach rate and low hardware sales, that's also a no-brainer.
And I could see how a high attach rate could improve hardware sales (in theory, plentiful / good games selling consoles), but I can't imagine any scenario where high attach rates hurt hardware sales.
If I stretched to find negatives, they would be:
-360 owners using their consoles a lot playing all the games they buy --> more RRsOD.
-360 owners buying a lot of games that end up being lousy, making them pissed off and unlikely to buy future games (probably not happening, most of the games on mrstickball's list had decent reviews).
-360 owners playing so many games that they're not getting enough sleep / food / excercise (especially with no calorie-burning waggle controllers) --> health problems and possible death!
What's impressive about attach rates now is it's in the Gamefly era. I know I'll be renting most of the games I want to play over the next five months (army of two, area 51, virtua fighter 5, racing games, sports games, etc.), and I'll *still* probably end up buying seven games (halo 3, gta 4, cod 4, bioshock, mass effect, assassin's creed, orange box) just in that period. No wonder many 360 owners are relieved games like splinter cell and too human have been delayed until 2008.
Also, do the attach rates include XBLA games?
We don't provide the 'easy to program for' console that they [developers] want, because 'easy to program for' means that anybody will be able to take advantage of pretty much what the hardware can do, so the question is what do you do for the rest of the nine and half years? It's a learning process. - SCEI president Kaz Hirai
It's a virus where you buy it and you play it with your friends and they're like, "Oh my God that's so cool, I'm gonna go buy it." So you stop playing it after two months, but they buy it and they stop playing it after two months but they've showed it to someone else who then go out and buy it and so on. Everyone I know bought one and nobody turns it on. - Epic Games president Mike Capps
We have a real culture of thrift. The goal that I had in bringing a lot of the packaged goods folks into Activision about 10 years ago was to take all the fun out of making video games. - Activision CEO Bobby Kotick