I went to Microsoft's website, and I actually found that they're pretty good about accepting requests to repair the XBOX 360. I think the issue is that the breakdown rate is so high, that challenging people's claims would be too inefficient.
PS. Someone gave me an interesting link: it has the sales for all the major consoles. I had no idea that the Wii was doing this well. Why can't I have one, Uhara-Mazda?