I feel your frustration. I've only been at the O gauge thing for a couple of months, and my DCS TIU went belly up. Fortunately, it's still under warranty, but it sure doesn't give me a warm, fuzzy feeling moving forward. The worst part of it is, I bought into digital, so my rig is completely down until I get a resolution.
The problem with digital is that it is, for the most part, disposable. If a board goes bad, you have to replace it. Almost nothing is socketed these days, so it doesn't take much to put you behind the eight ball. Proprietary technology also adds to the problem. There's probably not much more than a few bucks in the board and chips, and you do have to pay for the programming, but it's not like you can pop down to Radio Shack and buy one. There's not much competition - you could make the jump to Legacy/TMCC, but thats a crap shoot as well.
For me, I'll just have to see how it goes. My last purchase was on the "used" market, so I saved 50%. If I have to put money into over the next few years, it won't be so bad. For me, at least half the fun is the sounds, the smoke, and the control you get with digital, so as long as I'm in this, I'm hooked in.
If it makes you feel any better, most hobbies have gone in this direction. I have an off-road RC truck that's more fun than a bucket of monkeys, but I probably put at least $100 a year into parts. One good bash into a tree and I open the wallet. My buddy just got into 1:32 slot cars. He's been running the cars for a week and he's already trashed one of the two cars that came with the set, and the other isn't looking so good either. I'm sure he'll get less destructive as his skill improves, but that kind of stuff adds up. Tires, magnets, and other supplies also take a bite.
Yes, products should be more reliable, but fun costs money