I keep reading about the RROD, I understand what it is and all, but my roommate has had a 360 since launch, and it has never seen this problem. The system runs as smooth as it ever has, even when dealing with graphically stunning environments, e.g. Bioshock.
But if you're worried about the RROD, I wouldn't see why Microsoft would still put XBox's with that problem on shelves. I'm sure you're safe from it at this point (correct me if I'm wrong).
As far as games go, Bioshock and Halo 3, to me, make the 360 worth it. Then you have other great titles like Gears of War, Burnout, or Eternal Sonata (if you're into RPG's). Of course there are plenty more out there that I can't think of, but I'm sure they've already been listed.
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