Yeah lets not start a fanboy fight but still reliability wise PS3 are really good. Anyway lets keep that to one side.
I was able to sell it because even though the graphics chip was burnt, the other parts like motherboard and processor and blah blah were all good, the only problem was with the graphics chip if i remember correctly so what they do is if they get a Xbox360 with a processor problem, they would just remove my xbox360's processor and put it in the other Xbox360 whose processor isnt working. So thats what they do.. I dont know why they couldnt replace the graphics chip i dont exactly remember what reason he had told me though.
Anyway so you can still get around 5-6 thousand from it but i think that you will be able to fix it. If you are able to fix it, then first thing you should do is sell it. Get it fixed from one shop, take it to another shop and sell it and get whatever money you get and never come back to that shop again because if your 360 has had problems once, its very likely it will keep having problems. So either buy a new 360 or maybe a PS3 whichever one you like but i can assure you that problems will keep happening with the Xbox once it has given you the red lights even after it has been repaired.