I have to say I'm bitterly disappointed in my 360.
Time and time again I turn it on, only to play for a few minutes and end up playing KotOR or something on my original Xbox. I find the 360 slower, oddly enough, than the original xbox, and the sound output is crackly. Just to be finicky and add to the list of other issues.
Anyway, I voted for the RRoD issue, as I have suffered this twice. Fourth console for me. Hooray. Luckily the outfit I bought the thing from replaced it the first two times as it was in the first month (respectively) of me having the thing.
Total issues, however, are too numerous to list. The lack of an internal HDD, and the SKU with no HDD at all, are very valid points. I understand (and please correct me if I am wrong) that any standard 3.5" HDD can be put in the PS3 with instant ability to use the entire space, whereas with the 360 (even if you do manage, by some miracle, to locate the correct model) you can still only use as much space as you would have had with a standard HDD. Of course, I understand that there is work involved with the PS3 HDD swap effort.
So, at one point I gave up and tried to sell my 360. I couldn't even sell it for half what I bought it for. Including games and all. This, to me, is a larger sign of a failed console than anything else you could name. People want to see some kind of investment from such a large and heavily-hyped product. Not the type you might get returns on, but the type that at least your neighbour might covet. Not something that breeds fear in the hearts of men.
The cheap components report from whichever Taiwanese company reported it was expected like an oncoming freight train.
To add to this, I am expecting in the future that M$ will release a version of the 360 with a next-gen DVD format internally. They did this with HDMI, and so I don't think see any reason to suspect they won't do so with the optical drive. The bitterly disappointing thing about this is that those of us that purchased the console originally will miss out (and did so with regards to HDMI) yet they will still call all sales a win for the 360. I understand changes made to improve the general console itself (such as with the different versions of the original Xbox) but adding technology into a released product is a no-no. Whats more, if any devs decide to create huge mammoth-proportion games (who's not waiting for this to happen?) and decide they want to release them on a console, they will have to go with PS3 as the 360 'cannot play games from the HD-DVD add-on'. Where's the justice, you say?
My only hope now lies in XBMC for the 360. The possibilities at this stage are limitless!
Another point that has occurred to me is an alternate angle of the price issue for the PS3. Sure, at this point its way above expectations. However, as prices for the technology drop, prices of the PS3 will come down, and this will not be an issue.
At the same time; most of the other issues the PS3 is currently sporting can be fixed by some well spent development dollars (the online service and the limited games selection to name two). Considering how long the PS2 has been round, and how it is still being made, supported and sold (WTF were you thinking M$, dropping xbox1!?!?) I would say Sony intend the PS3 to be around for a long time, and so are thus far not concerned about the price issue. After all, its working insofar as to further their control over the next-gen DVD market, isn't it?
Now, if only it didn't look like something food should be cooked on...