I'd have to say... it really depends on if you're into online play or not. I know it has a lot of offline games, but most of your playtime will be online if you're into it.
Personally, I love the 360. I think it's the best system this gen (and I own all 5 of them... 3 consoles and the 2 handhelds).
The PS3 is good, and I've been playing the heck out of it lately (due to RE5). But, I think XBL is better then PSN. I'm a very lazy person and I don't like having to take the extra steps just to send an invite or accept an invite. And I'm not sure if the PS3 has party chat or not (as in like a group of 8 can all be in a party, on different games doing diffrent things and yet all still talk to each other), maybe one of the others here can answer that question. And there are some other things I like about XBL better.
And as for the RRoD... I've had it twice. Both times it was repaired for free... but I think I heard somewhere a good while back that they are in fact going to make people pay for shipping. It's a downside yes, but I still think the 360 is the best bet for a system.