Is it fair to pay for a broken device if you didn't break it?

To add a little backstory: I’ve been a loyal Microsoft customer since I got my first xbox, I’ve had ps3 and I just wasn’t impressed with it. I now own a 360 and a zune which are pretty much my prized possessions. Recently, I had to have my 360 repaired for the second time (RROD, obviously) and this time I had to pay to ship it as they no longer pay. I found this to be unbelievable.

Now, in the past few days my zune has been on the fritz. It started freezing and resetting itself, now it won’t add music as it seems to have convinced itself that its full. I found out this is a common problem and, like the ring of death on the 360, is a fatal design flaw and it must be replaced. I called tech support and was told that, since my warranty has run out, it will cost $160 to replace it.

So I ask you, the collective, is this fair?
Why should we, the consumers, have to pay for a badly designed product?

Also, just to throw this out there, if I don’t win my fight with microsoft and get my zune replaced for free, I’m probably going to get an ipod.