I forgot what revision consoles are in the Blue Dragon bundles, but I'm pretty sure they're not even Falcons, so probably not very reliable. But keep in mind that all 360s have a 3 year warranty that covers most of the major issues (and is still valid if you return to the US). If reliability still really worries you, I'd recommend you get an Arcade unit (make sure it's a Jasper, if possible).
As for Raiden 4, I haven't played it, but I've heard it's alright. I wouldn't hesitate to get it at $30. Raiden Fighters Aces is definitely worth it if you're a Raiden fan. There's Shikigami no Shiro 3, which is good. Also Otomedius G is nice, but not everyone likes it. I'm a big fan of Senko no Ronde, but it's not for everyone either. If you have an arcade near you that has these games, it would be best to check them out there to see if you'd like them. Also keep in mind that you can play most US region games on a Japanese 360, or you could also get the Asian versions which are cheaper.
