The weird thing is that mine wasn't even running hot when it happened. I had just booted it up and got one minute into the game, and it broke. I immediately felt the device, and both the exterior and the ports were as cool as when it is off. If it was overheating then it must be made of some mystery metal that heats up to solder-melting temperatures and cools down to room temperature within 20 seconds or something. Either that or overheating isn't the real cause but rather the effect of whatever problem the 360 has.
It didn't start RROD-ing until after I was forced to repeat Xbox Support's inane cable-checking steps ad nauseum, by the way. Weird. In a way I'm kind of glad, because now that it's showing the three lights at least Support will let me just send it in and not make me jump through their annoying hoops anymore. God I hate tech support.
It's weird that it's so cheap, yeah. It's a bit too expensive to just get a new one, but if it was gone for, say, a month or two, I wouldn't even bother with getting it repaired and would just buy a new one. Which only benefits them, but what the hell. But the whole situation with the quality of electronic devices and support you get on them is so awful that I'd rather spend money than go through the whole process. When my Acer laptop died I had to repeat the symptoms three times to a woman that hardly spoke a word of Dutch, and then managed to misspell every single part of my address. The street, the house number, the zip code, the city, everything. The best part was my name. She couldn't understand my last name so I had to spell it out using that name-alphabet thing you use when you spell over the phone, and she wrote down all those names as my actual first name. After that I had to pay €300 and do a month without a laptop until it returned. Three weeks later the problem also returned. Modern electronics suck.