XBox 360: Red Ring of Stupidity

Apparently widespread mass hysteria about the XBox 360 red ring of death has reached maddening levels. With some site claiming a close to 25% failure rate, Kotaku reports that many returned 360′s actually have a red ring of 4 lights (meaning video cable unplugged) and not the 3 lights that mean a hardware failure.
There have been so many returns, in fact, that we’ve been told Microsoft plans on disabling the four ring error code on future builds of the console. No word on whether they will remove the three-ring coding as well.
When looking through the Microsoft KB library, one happen-chances upon this article about how SPECIFICALLY a 4 red light ring means an unplugged video cable. What I was wondering is why when there so many 360′s out there right now why a firmware update in ADDITION to fixing ‘future builds’ isn’t warranted?
