I suppose it's possible for the whole thing to be made up. If it is, they did a hell of a job. [Edit: I.e., what Que said while I was typing.]
Passing along known design flaws assuming they can be handled later could be the basis for a lawsuit. I think the problem is that, unlike the Ford Pinto blowing up because of similar reasoning, no one is going to die because of a 360's melting innards. They won't suffer anything beyond inconvenience, as long as the warranty is in place. Still, you multiply any number by a few million plaintiffs, and some sharks should bite. Evidence is needed first, and I wonder if this guy can be persuaded to testify (assuming he really is the "Deep Throat" of Microsoft).