It appears that Microsoft isn't totally focused on screwing the customer (which is a great short-run position, but terrible in the long-term), as evidenced by this article. That's all well and good, but it still doesn't make me want to run out and buy another 360. I'd still caution other potential buyers about giving their dollars to Microsoft, too.
Why? Because this isn't really about the customer. It's about Microsoft covering its own ass. As the article says, "The company labeled it 'a move to benefit customers' but some might construe that as 'a move to avoid a major class action lawsuit.' Microsoft admitted that the failure rate among launch units was higher than acceptable, but it would appear from the numerous complaints on Xbox.com message boards and other popular gaming forums that the problem went beyond just the launch batch of consoles." No shit. When everyone I know who has a 360 has had it die on them, that's a little bit more than a "higher than acceptable" failure rate.
It is kind of nice that I'll be getting my 70 bucks back, even if it does take 10 weeks. I'll use it to buy a new PC game and to go see a couple of movies next year. Right here, Microsoft.
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