Also, I would much rather pay a bit more for a system that either doesn't have these flaws or shortcomings, or has less of them, and be assured of a wide game library sooner than later.
And as for a silly controller (which is really a matter of personal taste), you could always buy one of the many other ones I'm sure they'll make. Mad Catz (a company I live near) is one of the leading makers of game controllers, memory cards, and other peripherals.
There will be options people. Sony always makes sure there is. And while Microsoft may play that same tune, if they have a less than satisfactory product, it won't matter as much or at all.
EDIT:
I'm not talking just about what people prefer, but about the actual companies themselves and how this will effect them and their standing in the video game market and industry.
Remember, if these folks don't deliver, they ultimately sell out or go out of business, or drop out of the race. Those are the potential fates of any company. And no matter what happens, that effects what you, the consumer, has available to them.
If more people come out liking the XB360 and buy it in record numbers despite the knowledge of these flaws (or being ignorant to them) then thats different. But I just don't see that happening. Consumers are purchase conscious these days. They want to know what they're paying for because its surely an investment that will continue to be one for decades at a time.