You trying to start a flame war you SONY fan boy!?!?!?!
I have not had the red rings of death (which I expected to happen on my XBOX console that I got at launch ... but it's still kicking along

) but my Elite's ROM drive did died. Within a week and a half I got it back.
I assume the operating system you are referring to is windows, which is not used in the XBOX. In regards to updates to the console operating system I can only recall 2-3 since launch and one was the new dashboard. Compare that to the 5 or so I have had to do on the PS3 in less than 12 months.
With the PS3 I am hearing more and more reports of the Blueray player failing so it would seem that no console is infallible.
Microsoft are concerned with their bottom line, but so is every company. If Sony was so interested in keeping people happy, they would not region lock the Blueray player and than not release half the titles in regions like Australia (or restrict what versions of the Playstation we get, etc.)
I know Microsoft do the same thing, every company treats Australia as a second class citizen, which I have never understood as we have the fastest take up rate of any new technology product per head of population in the world.
If someone at Microsoft knew that the console was scratching disks and still let them go out, than they deserve to be fired, and if it was known at the top levels, than the company should be held liable. From what I have read though, what they knew was it could damage disks if the console was moved with a disk in it ... well so can any kind of disk player.
The report in the link states if the console is put on an angle. How big an angle and why are people playing the console on an angle? I have used my XBOX's flat and vertical and not had an issue and to my knowledge no one I know has had a scratching issue.
I have used my PS3 in the same way and never had any issues. I would never use my PS3 on an angle either.
My consoles have been driven up and down the east coast of Australia from North QLD to South VIC in the back of my 4X4 and I still have not had a "balance issue" with the XBOX's or PS3's.
So how much of this lawsuit is a genuine gripe, and how much is it about people looking to blame a company for their own stupidity?