Is RROD even an issue these days? its been solved long before the slim came out. Lets not forget the PS3 has had its fair time in the spotlight for hardware failure YLOD and laser failures. Not defending the RROD here, i suffered with it a few times, but considering i sent my console off got it back in just over a week and got a free month of gold time and it was a free repair it was a small price to pay for something i got a benefit from.
PSN might be a free service but if you look at the age old tired point of PC gaming does so much more so much better for free. Its sony's own arrogance that brought this situation about, their selfishness over their network and console disabling stuff like otherOS, if they'd have left it in people would have started poking as much as they did to find a way to get it back. Most of this stuff came about due to people wanting homebrew (which as a aside effect enables piracy, don't get the two mixed up), sony refused to listen and bam the doors get kicked in.
Now theres rumours of a 3rd breach, PSN being down almost going to screw over the US release of brink and others, EU is a good possibility too.
The way they ran their servers is truly shocking, anyone with IT experience knows not leave stuff like apache unmaintained let alone WITHOUT a firewall, on servers where personal data is stored? thats just madness, the UK ICO is going to chew them over it, the US are and its a matter of time before the EU do too, and in a very worst case scenario sony could lose their license to take card payments meaning things would have to be done via prepaid cards. There is no limit to the end of the lesson sony can learn from this, both on a corporate business level and on a community and PR level too.
If i was genuinely a PS3 owner or SOE MMO subscriber I truly wouldnt be after this, its just mind blowing the incompetence.
As for if LIVE is worth paying for, IMO the community despite its stereotype is better on 360 than PS3, i can't speak much for how reliable it is but i've never had much issue with it at all and also i know its networking is easier to please requiring just a couple of ports forwarding (or let them autoforward), the amount of PS3's i've had to shove in DMZ's and mess about with to get them pleased.
Tempting to buy one of these http://store.penny-arcade.com/products/it-only-does-tee