I'd have to say I'm 50/50 on this one. I have heard of all the stories and known facts with problems that have and currently exsist with this system. My roomate himself has experienced the Red Ring of Death, while I have yet to experience any problems with my own. There is no doubt though that Microsoft rushed the 360 out before Playstation 3 instead of taking the time to create an actual good system. Hopefully they will take this as a lesson for when they release the next Xbox.
Microsoft doesnt really care if there are only a few small problems with their product, they release it anyway because they know it will sell because of certain big title games that they have for their system.
In my opinion Xbox is great, they do fuck up every now and then but they are extremely easy to send in, that is if you still have a warranty ;)