Imagine the rage in MMO or RPG gamers if their console cuts out in the middle of a fight? The hardware might have survived the power issue then, but will it survive the destructive energy of mad users?
I'm imagining it right now, it's both hilarious, and hilariously unimportant by any standard.
If an AFCI makes the difference between "my Xbox cut out and lost me some game progress" vs "my Xbox cut out and set fire to my home", then it's done everything that was required.
Remember, a games console is a corner case in terms of safety and reliability, ie.
- it's made in huge numbers, and is sold to people who will take every possible level of care of it, from extreme mechanical sympathy to utterly reckless abuse - so it needs to be extraordinarily safe, but...
- if it simply fails to function, the real-world consequences are almost definitively trivial. "Someone can't play a video game" is about the single most unimportant consequence a failure could possibly have, so any need for reliability is all about the manufacturer's reputation. That's a commercial decision, and I can easily see how replacing a power brick made more sense than replacing entire consoles.