I get a kick out of the whole "red ring 'o death" argument. I've had my 360 for 3 years now, 15 months of which were spent in Iraq. It moved 4 times in Iraq and went through several dust storms and even lived with the unregulated/unreliable generator power that we had over there. It still works like it did when I first pulled it out of the box. Several other guys in my company bought them as well, and none of us had issues. I had a couple platoon leaders who went the PS3 route and ended up throwing theirs out after they died after the first power surge/outage.
Bottom line: get the console that you want to play on. They're both good. Just don't get bent out of shape over a video game console. There's so much more in life to lose sleep over. Trust me.
All that being said, Forza 4 looks positively kick ass!
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2010 Summit White 2SS/RS LS3
MODS: CAI by CAI, Flowmaster American Thunder Cat-Back, DBA 5000 Slotted/Cross-drilled rotors (Front), Hawk HPS Pads, Russell Braided Brake Lines, DBA 4000 Slotted/Cross-drilled rotors (Rear), Barton Short-Throw Shifter, UM Comp Extractor Hood & Gen I Spoiler, custom paint