The only mod that has ever failed me was when I knackered the mobo on a falcon when the screwdriver I was using to remove the x-clamp slipped. So, it really wasn't the mod that failed, it was the modder. Not uncommon. We are imperfect vessels.
To be completely honest, I'm somewhat amazed at how physically robust my 360's have been (for all their delicate sensibilities when it comes to heat). I've torn down my current Jasper mobo more times than I'd care to admit, put God knows how many hours on it, and it keeps on keepin' on.
In terms of the original case, original form factor, a 1U copper or copper core heat sink, properly installed and ducted, will certainly outperform the aluminum extrusion that MS used for early revisions. The 2nd gen GPU heat sink is a little better than the original, but a 6mm heat pipe attached to a very small fin stack is good for perhaps 20 watts thermal dissipation. Small form factor server heat sinks are generally designed to cool ip's with TDP's of around 100 watts. These sinks are capable of dissipating more than 100 watts with a little foresight and appropriate accommodation (e.g. proper ducting). I wouldn't trust a plain aluminum extrusion like the 1st gen GPU sink with more than about 45 or 50 watts dissipation, and that's stretching it, yet MS used it to cool a GPU pulling 75 or 80 watts, easily.
In terms of using 360 CPU heatsinks on the GPU, they are capable of handling the thermal output of the 360's GPU, but aren't well optimized for ducted passive performance. The 2nd gen CPU sink is a little better off in that regard because it has a looser fin pitch than the 1st gen sink. Using a 1U or 2U server heat sink, a solution optimized for the ducted passive role in tight quarters, you will get better performance than either generation 360 CPU or GPU heat sinks are capable of achieving. In other words, the reason you've seen dual CPU heat sink mods fail is partly because the CPU heat sinks aren't well configured for that role.
In all honesty, the 2nd gen GPU sinks will keep a 360 running, and maybe for the practical life of the console in many cases. The majority of PC CPU heat sinks are substantial over kill for the TDP of either 360 chip. If you have plenty of time on your hands, and are interested, there are better ways to cool an Xbox, but it's not necessarily mission critical, and that's not what I am suggesting. I am merely responding to queries I have seen in this forum and others wherein individuals have inquired about the possibility of using PC CPU heat sinks to replace the OEM Xbox equipment. And, as discussed in the original posting, yup, it's possible, but it takes some work and you really have to want it to happen.
I think even if you do manage to address the CPU and (esp.) GPU thermal shortcomings of the 360, there are still some real challenges in the thermal design of this console. The video composite chip (aka HANA) gets hot as hell down there. The RAM chips also run a little warm, though nothing as outre as the HANA. The south bridge (roughly) chip gets balmy as well.
Really, if Bill G. would've payed me a small onetime consulting fee back in 2004, say $500,000 or so, I think I (and pretty much any well informed user of this forum, or any 12 year old junior high student well versed in computer hard ware, really) could've solved what was to become a 1.5 billion dollar liability with the following suggestion; "Gee, Bill, it'd probably go better for you if you put the DVD drive UNDER the motherboard. I mean, you'll have the same form factor, your DVD tray shifts down an inch or two, and you'll be able to vent heat from your CPU and GPU much more efficiently using low profile heat sinks". On that note, equalizing the air flow across the full width of the 360's heat sinks would've helped a great deal as well (i.e use the same heat sink profile for both chips from the factory, rather than devoting the lion's share of the air flow to the CPU [which doesn't need it as badly as the GPU] merely as a result of really sloppy thermal design).
But, although I waited by the phone for many an hour, the call never came, and we got what we have now; that is varying degrees of hardware failure in any given generation due to poor thermal planning on someone's part.
I didn't mention this in the original posting, but I don't think the Lian Li case was very well thought out, either. It has superior thermals, but it damn well better, considering the size of the thing. I had to figure out a way to invert the DVD drive to be able to use my 360 in a horizontal configuration, because as it came from the factory, the LL case had the retention tab in the DVD tray on the upper part of the tray, meaning that when gravity reared it ugly head (at 10,000 rpm no less) the disk would sort of flop out of the tray. Also, LL's enclosure is prone to vibration, a problem I have spent a good many hours addressing in some fairly creative ways, not all of them soothing to the nerves.