Okay, after considering my options a bit I've changed my mind and decided to pay Sony $149 to replace my PS3. It turns out Shipping is included in that cost (although sales tax is not, so beware if you live in a state with sales tax!), and $149 is much better than $399 or $499 for a new (well, refurbished) Playstation 3.
I asked Sony to send the prepaid shipping box for my PS3 on Tuesday; it's now the following Monday and I still have yet to receive the box. I'm not sure how long it should take to arrive.
The only thing that scares me is that I'm going to be getting another 60GB unit. Since it will be hardware from the original generation, it will be more prone to failure than the newer generations.
Does anyone know if Sony will still work on an out-of-warranty PS3 if you remove the warranty sticker? I think they will, but I want to be 100% sure before I crack the box open and try to dust the inside of it. I used a can of compressed air to blow a bunch of dust out of the unit, and I was able to run games for significantly longer before the graphics started glitching out.
Speaking of dust, take a look at the self-cleaning capabilities of the 40GB unit:
http://www.psu.com/Get-your-40GB-PS3-to-clean-itself-News--a0003360-p0.php
Finally, here's the video I promised of the PS3 overheating:
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