I was going to buy a 360 but
everyone I know who has one has had to deal with the RLOD at
least once. PS3 was way to expensive but its gone down a good bit, however theirs still not enough titles

-Otherside
out now:
Heavenly Sword
Ratchet and Clank
Uncharted: Drakes Fortune
Assassin's Creed (cross console)
Virtua Fighter 4
Ninja Gaiden Sigma
TimeShift (cross console)
all of which are great games. Uncharted has better graphics than anything for any console out there right now.
out soon:
Haze (ps3 only, if executed well it should be far better than Halo 3)
out sometime:
MGS4
GT5
FFXIII
FF vs. XIII
Afrika
and theres another really cool rpg from square-enix thats being made too. i'm sure i'm missing plenty but really you have something from every genre and you can always expect EA sports to make some fun games.
as far as 360's failing, the first issue my friends all had was the disc tray not coming out or only coming 2 cm out. you have to really mess with it to get discs in and out. as far as the deaths and failures, even the Target display ones have undergone it, even the new one they just put out at Target, it can't even load the demos on it...I was mad as hell lol