I've heard the same thing about the console not playing on it's side. Nice work, MS.
Unfortunately, I don't think Nintendo having a problem-free launch equals instant positive PR. Xbox 360s problems do equal bad PR, but nobody writing news really cares if someone has a problem-free launch, that's what should be expected! A smooth launch isn't really newsworthy. But it still makes Microsoft and Sony look bad, which is a-ok!