I won't touch on the games comment because i don't want this to be a big ass post
how much of the casual market that sony and microsoft want so much of, will actually care that the ps3 and 360 is technically superior to the wii?
I can tell you, not much will care, if at all
say if Nintendo actually did the Wii HD at E3 and the only difference was HD graphics with nothing else different from the first Wii, would you go buy one? I can bet no you won't and neither will the casual market who has a Wii already. Maybe some of the hardcores comes back but not enough.
thats the problem with nintnedo doing a Wii HD or Sony and Microsoft doing Move/Kinect, the casual market who spent 200-300 on a system and more on games and controllers won't buy another sysem for the same motion controls with no differences.
if nintendo thought they could get away with a Wii HD, they would have done it long ago