I think the ring o' death basically tells you MS knew about all these problems before it started shipping them.
I have had 4 xbox360s since they have been released and sold them on (luckily), and all 4 of them have since broke. One lasted a year, one lasted less than a week.
Having already read the series of replies to this I know I'm a little late to the party but....
PC motherboard manufacturers have been putting hardware failure and configuration diagnostic tools (via LEDs on the board andPC speaker beeps) onto their products for years to aid consumers and their tech support in identifying root cause for hardware issues/failures. I dont see how using the external LEDs around the 360 power button with flashing sequences or alternate colors (i.e. red) is any indication of prior knowledge of the RRoD by MS. Quite frankly, they'd deserve to be slapped harder for not having the tools in place to troubleshoot such issues with customers on the phone.