I'm seeing a lot of different opinions about why Xbox 360 users are experiencing such a high rate of failure and yet still want to stick with the platform. Most of these opinions are from people who don't seem to have any first hand experience though so I'll share my thoughts on the matter since I'm on my 3rd 360.
There are 2 primary reasons why people still would buy another one and they are
1: People don't have much trouble getting them fixed. No manufacturer of any product that I'm aware of has ever responded to hardware failure this way. You call a number and tell them your 360 got the RRoD and they will pay shipping both ways and repair or replace your console, no questions asked. They shipped me an empty box and I put my 360 in it and shipped it back. I was on hold for about 2 minutes, the total phone call didn't take more than 5 and from the time the 360 broke until I had a replacement unit in my hands was a total of 10 days.
But even with that great experience it still sucks that we had to do it at all to be honest, and it wouldn't be good enough except...
2: It's a great gaming platform. I have owned and played nearly every major gaming platform and many of those I played into the ground and I have never logged this many hours on any other console, not even close. The game library is tremendous and blows the competition out of the water, the Xbox Live experience is top notch, the Xbox Live Arcade downloads are awesome and frequent and the media capabilities of the platform are just short of a htpc. This is why when my replacement Xbox went out 2 years later I decided to just buy another 360 (I wanted the new Jasper board) and try to fix the first one myself so I would have two. (which worked btw)
So when looking at the 360 platform, yes the hardware issues suck and despite what everyone in these threads seem to think Xbox owners know this, it's just that everything else about the platform is so damned excellent it doesn't matter.