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If the 505 were as flaky as you suggest this forum wouldn't be full of happy people. Unfortunately you got a lemon unit. That happens sometimes with electronics, but it is not a good indication of the product reliability as a whole. There are no "wholesale" product issues with the 505 that I'm aware of. Certainly my 1+ year old unit has always been problem-free.
I'm sure once they fix your 505 it will work fine for a long time. I wouldn't run out and buy a new model unless you really want one. Also the 700's screen is one of those "love it or hate it" things, so don't buy it unseen.
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