My 360 is doing fine and I had one since June I just get a occasional disc read error but it was a far less occurance than the disc read errors I got on the PS2. Its in the verticle position and theres little scratches on my discs, I think people forget that every disc based system scratches discs due to wear and tear people are just paranoid.
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2.) overheating seems to be an issue early on, have they done anything since launch to correct problems or to remedy heating (or other) issues? I have seen some attachment devices such as cooling units and things ...are these recomended? Does anyone buy these, or are they cash-in gimmick item(s)? I can NOT spend $400 on a malfunction!!
Microsoft is now using a processor that produces less heat. And don't bother with those external fans that you can buy for 19.99 they seem to cause more problems than solving any. Just put your 360 in a place thats well ventillated.
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3.) The premium package seems to have everything I need, but are there other expenses and things I have overlooked?
Xbox live subscription, XBLA games and microtransaction purchases if you plan on those, if your planning on connecting to XBL wirelessly a wireless adapter which costs 99.99 . And if you want to play HD-DVDs the external attachment is 199.99 but thats completely optional.
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et me say this. All MS 1st party games and most of the big 3rd partygames will ALL eventually get ported to PC. If you are really worried about relaibality maybe you should consider getting a good video card and decent RAM and just get your HD fix that way.
Thats about 80% false and 20% true, its obvious that microsoft is pushing cross platform availability (most 360 accessories compatible with PC accessories) and some xbox/360 games will end up on the PC but most of them takes years for that transition to happen and to a point where people just won't care for the 1 - 3 year late PC port. But the games that similtaneously launch on 360 and PC, you need a good and sometimes expensive PC rig that it will be much cheaper just to get the 360 version.