Interesting comment you make, IR, about reliability not being up to snuff with LED's. I generally think of LED's as being more reliable than just about any other source out there (I might need to look up some specs on induction lamps first, that's the only other source I can think of which might match the reliability of LED's). For colored lights (stop lights, taillights, exit signs, indicating lights), you can't beat an LED for reliability & long life. My guess is that you experienced a manufacturing defect.
My understanding is that LED's biggest hurdles to entering the general purpose white-light illumnation markets are:
1. Lousy color rendition
2. Low power densities (which means big sources & poor light control/focus & large fixtures)
3. High cost
All three of these are slowly being improved.
There are actually two manufacturers out there (that I'm aware of) making LED fixtures for the architectural lighting market -- ColorKinetics is one. . . And the name of the other slips my mind right now. . . .
Anyway, they both offer big flat LED array panels. Interestingly, you can control the color output from these things to any color of the rainbow. On some models, you can even drive them somewhat like a very low resolution TV (200x200 array or something like that).
But those things are very high priced.
And the white light that they generate doesn't come close to traditional white light sources -- if you want real white, or color rendition, stick to incandescent or fluorescent or metal halide.