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Simple answer: Halo 3.
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It was something like 25% - 50% of all first version 360s died.

Microsoft spent over a billion dollars replacing and repairing consoles to maintain the good brand name of Xbox.

https://en.wikipedia.org/wiki/Xbox_360_technical_problems

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Family got first gen 360. Still works to this day. We hit the jackpot with that console. It out lasted 2 wiis and a ps2
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Whenever we lost a 360 we got a pre owned 360 from gamestop. I think they went for like $70 for one without any hdd.
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That was the real story, by the time they started dying you could just grab a working one for "decently cheap" if you still cared.

However, I wonder how many people got "burned" by it and swore off Xbox consoles going forward.

I know that era we got a lot more use out of the Xbox (original) and the Wii.

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