I'm inclined to disagree that I'm being horribly ripped off by companies, but then again I don't own a 360 which really seems to be the target of the OP's ire. My cat frequently knocks over my Wii while I'm playing with it and 1. my discs aren't destroyed and 2. my game keeps on playing. Seems pretty durable to me. On the software side of things, games have actually gotten CHEAPER for me, as I suffered through $60 carts for N64 games, whereas I can pick up games for $20-$40 for my DS or my Wii, or I can buy incredibly good console games off of Steam, like Mass Effect for $5. And this isn't even taking into account how much it costs to produce a game with graphics that are deemed acceptable by the masses, how much harder it is to make sure there are no glitches, how much the dev kits cost, and the increased cost of marketing.
Not going to argue that pretty much everything is more fragile than what it used to be in the past, and this problem really cropped up when we started making consoles into multimedia centers. A lot of my friends had loads of problems with their early PS2s since they were doubling them as DVD players. Nintendo skipped over trying to make their consoles home theatres, and it happens to be the most durable console of the current gen. Just something to think about.