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Firstly, please state your source for claiming that TVs hooked up to an XBox 360 will suffer from "burn-in" static images. Actually, I should say burnt in images onto your TV screen is what you're talking about here.
I'm dubious whether it is just the XBox 360 which can cause this - other consoles present such a problem and leaving a video on pause for a prolonged period of time can have the same effect. I should think it is because the phosphorus coating over certain areas wears away, hence, leaving a residual image. If people pause their game, leave their TV on and walk away and some kind of after-image is left then that's not the console's fault - that's the way TVs work.
Yes, there are hardware failures - a small minority have complained that their XBox 360 repeatedly crashes and it is Microsoft's duty to compensate owners of faulty machines. But, hardware problems aren't a big surprise and by no means equates the console to "sucking". I remember when the PSP came out and Nintendo fanboys cried in glee as pixel death on the screens occured for a number of the handhelds. Did that seriously harm UK launch day sales? No. If you have a hardware problem then the firm will reimburse your losses. A company of Microsoft's scale, who want to be dominant in the gaming industry, wouldn't release a product that resulted in the damage of the majority of TV sets.
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