[citation][nom]FKSSR[/nom]Isn't the Arcade console the one without the hard drive?My questions was whether the new Elite versions (with a hard drive) still have the issue.badaxe2 addressed my question.[/citation]The issue has nothing to do with the HDDs, Elite, Arcade, etc. It's about the GPU/CPU in older models being very hot and poorly cooled. Newer boards (in any model) are not as prone to overheating. Falcon and Jasper are significantly cooler-running and more reliable. A lot of repaired models came with improved cooling, too.
This mod was creative, but not needed. There are plenty of internal mods that don't require removal of the DVD drive, for old units with underperforming coolers and hot chips. Heck, xclamping both the CPU and GPU along with some careful application of Arctic Silver 5 is a good start. But you can also buy/make a revised heatpipe cooler (assuming you don't already have one) and/or add additional internal fans. You can also replace the existing case fans with better ones, and mod the fan openings to flow better.
So basically... tons of options that don't require you to stick your DVD drive outside the console in an idiotic fashion. Anyone who builds PCs and is familiar with smart cooling setups can do it on the cheap. Plus, the 3 year warranty I think has covered most people pretty well, unless they voided their warranty. MS f'd up on their cooler design big time, but they did at least beef up the warranty and will repair the systems no questions asked. I can't always say the same for Sony hardware. PSPs and old boxy PS2s especially.