Don't agree with you on that one. Yes they should replace the bad hardware with new but only after the initial 12 months warranty is up. My xbox elite which i bought only 9 months ago has been in for repair 3 times and is now going in again because I just got E74, 8 days after just getting it back after it getting RRod.
Yes I am happy it is getting repaired for free but only rightly so because it is still under guarantee. My point is if I bought a new tv and within 6 months the screen went, I could take it back to where I got it and because it is still under the initial 12 months warranty, I would be issued with a brand new one.
The point i feel that is being made above is spot on. I bought mine brand new only 9 months ago and like i said it has been in for repair 3 times already. I was told today by microsoft, that if it cant be repaired this time, I will be sent out a refurbished one. I don't see this as fair as my brand new one is not even 12 months old and I am going to get a patched up one back from them.
I feel that the policy should be, if your console is less than 12 months old and you get major hardware failure (RRod, E74 etc.) then you should be sent a brand new console, but if your console is over its initial 12 months and a repair is being covered in the extended 3 year warranty for the above failures then they are entitled to give you a reurbished console in return.
Bottom line is I paid over £200 for my brand new elite only 9 months ago and I have been given a patched up refurbished console in return after sending mine off to be repaired through no fault of my own.
Don't seem fair to me.