Yeah, the 360 already has a variety of games compared to the PS3. All the PS3 has is MGS4 and maybe Final Fantasy 13. Screw Resistance, that game is not that impressive. Compare that to the 360's Dead Rising, Dead or Alive 4, PGR 3, Saints Row 1, Full Auto 1, Gears of War, Crackdown, Halo 3, Blue Dragon, Mass Effect, Forza 2, Too Human, etc. And don't get me started on what the Wii has...well, I actually have a limited knowledge on Wii games, but they're probably much better than what the PS3 has to offer.
As for the failure rate, again. Who really gives a shit? Everything breaks. It's not like a console is gonna last 15 years, because that would qualify as a very long time. Even if the 360's failure rate was as really as high as retailers claim it is, it wouldn't be on store shelves. Then again, should we really trust what retailers have to say? I mean, whenever a console launches, Best Buy and Circuit City always bundle it with 10 games and several accessories for at least $1000. I'm just saying.
Besides, it's not like a 360 breaking is gonna cost you anything. Repairs/replacements are free. You're just gonna lose a month of 360 gaming at the most.