I'm thrilled to see things like this happening.
As much as i've loved owning an Xbox 360 for the past year, i've been very aware of the horrible failure rate of the console through reading forums, and just hearing stories from people I know. Microsoft deserves every bit of shit they get for it. They've made a very fragile machine, and they need to own up to it, and fix this shit immediately. They have a serious problem here, and I think they've just tried to keep their head in the sand for too long.
I still can't believe how lucky i've been to experience no major problems with my 360. I have had a few odd experiences, but never a total failure. So, i'm one of the lucky ones.
I have a friend who just bought a new one, and has since returned it twice due to the machines giving disc read errors, and freezing. So, it sounds like even the newest machines being sold can be quite dicey.