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RRoD = people not taking care of their xbox. All the new models (that came out within the last year and a half) have that same processor. HD space isn't useful yet. I have my 60gb hard drive and had it for a while now. I think I have used 200k?
90% of the RRoD problems are people leaving their xbox in a small space enclosed on three sides like old vcrs were with no ventilation. If you give your xbox sufficient room to breathe (standing it vertically on top of a tv stand or just somewhere where it's not in a hole somewhere, you'll never have any problems.)
As for the potential, game companies have hit a wall for graphics potential with the recession. I think that PS3 might start coming out with more detailed games within 3 years possibly? not anytime in the next 12-18 months for sure.
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