Yeah, I'm A big fanboy here. I don't own a PS3, I own the 360. (Although its somewhere in Texas right now, being repaired for the second time) Don't be so sure about the hardware problems going away for MS. Just look around on the internet, and you will find plenty of people having problems with the newer consoles. They built a crappy peice of hardware, and that is pretty much the bottom line. The flaw is in the design. It just can't disperse enough of the heat.
In my opinion, if buying a console right now, I would choose the PS3. The game selection is getting better, and the hardware is much more stable. I know the PS3 has some reports of hardware failure, but that happens with all electronics. Just not at the extreme rate 360's crap out. The extended warranty on the rrod is great, but after 3 years your out of luck, and chances are it is going to happen eventually.
How about the quality DVD drives that are in the 360. When I fire that baby up, my wife usually ducks, because she thinks there is an appache helicopter flying over the house. Very high failure rates on the drive. Really though, the 360 is the loudest piece of electronics that I have ever owned.
In all honesty though, I have had lots of fun with it. It is a great console with lots of great games. Just a real crappy build quality.
I need a bigger hard drive, as I only have the 20 gig, and I refuse to pay the prices MS is asking to for a new hard drive. Between the HD, another year of live, plus the $80 or so that Gamestop will be giving me for the trade. I can justify the cost of the PS3, and then I don't need to buy any accesories for it. Comes ready for wireless internet, rechargable controller, and free PSN.