Mine got hit by lightning and only the network port was damaged. I didn't call them - simply filled out an online form, got a boxed mailed to me, put Xbox 360 in the box, got picked up the next day, got delivered back, fixed (they even put in an improved HDDVD drive) two days later. That's a pretty damn good service if you ask me.
And to people who get RRODs: this is often the case due to
a) leaving it on for far too long
b) shoving it in a confined space
c) putting it in a space where other appliaces are already generating heat
No, it shouldn't happen that easily but you should take precautions with everything. Actually, my Wii has artifacts due to overheating and it has a piss weak graphics card :eyeroll: And it was always standing upright with plenty of room on all sides so it goes to show sometimes things just break (and of course, a month after the Wii was out of warrantee).