If your 360 RRoDs with the newer models, it's *your* fault for putting it in a location where it can't get proper ventilation. The newer ones have a much lower failure rate. Hell, I've have a launch era 360 Core that still hasn't RRoD'd, and believe me, it gets plenty of use.
Still... if you don't mind not being able to play new games, go with the PS2. The PS2 has an amazing library available, and can also play PS1 games.