While i agree that Sony may want to charge for online play with the PS4 it seems unlikely that they will introduce charges for only one system when PSN will still be free for PS3 and PSP users. What will probably happen is that they will introduce a premium play online service with cross game features like those of xbox live to run along side the existing network then slowly downgrade PSN until you are forced to pay if you want a decent lag free game. That way they can keep small bandwidth games running fine on PSN for the casual gamer but they still have the hardcore by the balls, all with the bonus of still claiming to have free online gaming.

I don't think it's fair to compare any solid state hardware to any drive based system, but if you want reliability i have an old Atari 400 that still works and is so tough you can stand on it without fear of it breaking!

To be fair the PS1 drive failures were very widespread, are you saying that you never had to turn your PS1 upside down to get it to work, because if so you were one of the lucky ones. Even so i'm not saying the failure rates were comparable, just that it's not a good reason to condemn the Xbox and lead us to a one (hardcore machine) marketplace dominated by Sony.
My point is that while my 360 has died and needed repair or replacement more than any other console i've owned, i've still yet to pay a penny to get it fixed, and while i would be outraged if M$ didn't repair it all for free, they do, so while it may have hurt M$ it hasn't really hurt me.

Once again i have to ask, what is it with the Sony fanboys that they feel the need to harp on about the RROD at every opportunity, according to most sources the problem was fixed with the Jasper chipset; http://www.engadget.com/2009/03/01/xbox-360-red-ring-of-death-problems-f..., though i would be interested to see some evidence to contrary, if you have any, but i have more than a slight suspicion that you don't.
It seems odd to me that you invest so much of your time in a hate campaign directed at a console you don't own, after all you don't see 360 owners raising the RROD issue time and time again, even though it's them suffering, perhaps because with the M$ returns policy it's not really as big a problem as you make out?
As a 360 owner who has suffered the RROD more than once i should point out that i have found it annoying when it happened, but, due to the swift and completely free returns policy, nothing more than inconvenient, and certainly not a reason to avoid what is otherwise a great system.
Before i get accused of being an Xbot, keen to defend M$ against all attackers, i feel i should point out that i also own a PS3, and have no particular bias to either manufacturer, i think both are superb consoles, and while the 360 no doubt has the edge when it comes to games, the PS3 is catching up fast and is without question better value for money (Blu-Ray, Wi-Fi, free online).

Whisky, are you totally naive, if M$ had not entered the console market then Sony would still be expecting the console owning public to get a second job in order to afford the PS3, competition is a good thing for the consumer.
While we're on the subject of hardware failure does the fact that both my PS1 and PS2 died after just over a year (requiring costly replacement) mean Sony should never produce another console? Of course not, the games industry would be in just as bad a state if Sony decided to drop out as if M$ took your advice and never made another console.