It's true. Their conference consisted of them saying for about half of it "Hey, we're gonna go explore these new markets with non-games that appeal to non-gamers. Isn't that great?"
Then about 1/4 of it was them showing the latest franchise retreads in their library, all infected with shitty waggle or stylus horsecrap gimmickry. This was done to keep the traditional "hardcore" fan buying Nintendo shit, all the while preparing them for the eventual day that Nintendo no longer makes anything resembling an actual game, which of course the ninthings will just say is a brilliant stroke of genius since it will make Nintendo more money, and isn't that what matters? Also, they paid lip-service to the idea of supporting online but then completely missed the boat when they left one of their biggest multi-player franchise titles coming out this year decidedly OFFline.
Of course, the cherry on top of this crap sundae was the Wiifit presentation.
So, why is this a bad thing? Well, because Nintendo are probably going to be the market leader as far as install base goes. They are pandering to a demographic that has no interest in actual games with an affordable piece of hardware. Now, I don't really care if Nintendo sells more consoles than MS or Sony. Honestly. The problem arises, however, in that 3rd party devs will cater to the stupid gimmick laden Nintendo consoles and ignore actual gamers pining for product. We're already starting to see this (DQIX anyone?) and frankly it's pretty frightening in it's implications.
So in solution, we should take off and nuke Nintendo from orbit. It's the only way to be sure.