Interesting editorial commentry, Its interesting what you said about Nintendo's overall strategy.
If you watch Iwata's Keynote speech from the Tokyo Game show you'll see thats pretty much what thier strategy is.
Just a quick comment on the Dreamcast as well, I think there was more innovation there, first console with truly accessible online accses and features (now a major strategy for the Xbox), new storage medium, the VMU which was never fully exploited, analog triggers and some pretty innovative games (jet set radio, crazy taxi and I know your not a fan but I felt shenmue had at least innovative elements)
Also just one more innovation for the N64, I believe it was the first console to have 4 controller ports (please correct me if i'm mistaken) which was then adopted by the dreamcast, xbox, gamecube etc.
Great show as always at the moment i'm listening to the very interesting feature about C64 demo's, some very impressive stuff there.
"Wonderful innovative titles are 'sometimes' ignored [by consumers], while some repetitive titles with minor improvements in game play and graphics provide much better returns to the games publishers,"