Here's my take on it. I have 2 360s. Never really cared for Sony as a company. I also have an orginal xbox. For me the deciding factor was Xbox Live. All my friends have 360s. But, that 33% failure rate is in the back on my mind. I just sent one of my 360s off to get repaired. We'll see how long it lasts. I may end of sellng it when I get it back and buy a PS3.
Here's something I'm curious about (yes, I'm really curious - this isn't a cloaked MS bash) - how do they figure that failure rate? Is it the number of consumers whose 360's have failed? Does it somehow take into account people who've had multiple units fail and/or the same unit fail multiple times?