RRoD was my deciding factor between the PS3 and 360. If only I knew...
For me RROD was one of three reasons. The other two were that you have to pay for online with the Xbox (which apparently you get what you pay for, so that may be a good thing), and the fact most of my friends use a PS3 so if I got a 360 I would basically have to build my buddy list from scratch. From what I understand, the latest 360 slim revision nailed the RROD problem, so its not a major concern anymore. I'm sure it still has a failure rate, but now its probably at an acceptable level and probably no worse than a PS3 might experience.
At this point I have about 20 games invested into the PS3, so switching systems now is out of the question. The only thing I might do now is buy an 360 as a supplement rather than a replacement. But I'm on the fence about that. There's a handful of 360 exclusives I'd like to consider, but I'm not sure if there's enough to justify spending another $200 on a console, plus another $50 a year on top of that for online access.
Anyways, after what has happened Sony might consider charging for PSN because that may be the only way they can afford to beef up the security on it like it needs. When a company provides a service for free they have little incentive to make it good.