I just sent back my 360 for the laser drive failing....discs wouldn't read on it. When I spoke with the microsoft representative, they said the RROD problems are starting to fade out and this problem is starting to happen more.
My daughter and I played Lego Indiana Jones the other day, but we'd rather play it on the Wii. Even though it doesn't use the light bar and barely uses the accelerometers (you shake the controllers to build stuff), we both prefer the separate nunchuk design for game control.
But for media, I still haven't found any dedicated media player that rivals the Xbox.