Your doomsday scenario isn't gonna happen, man. Software for the 360 is selling very impressively, and no single company can stop the progression of technology. If you don't like what Nintendo's doing there are plenty of other options. It'd make more sense to focus your anger towards MS and Sony for botching this generation than getting in a hissy fit over Nintendo.
The whole point is that I don't have other options, because I let this thing into my house. Instead of showing off some cool racing game to the family and thereby managing to sneak in some game time into family functions (or at least having something nice to look at), I'm instead showing off fucking WiiSports. Which they love, so the game time is suddenly theirs. And instead of spending late hours calling in airstrikes and whispering "duck-a-duck" into the microphone before sending in an attack helicopter, I'm busy becoming irritated over random mini-games in Mario Party.
And the doomsday scenario may be exaggerated, and I don't personally believe Sony could opt for the low-end business as it's far too dependent on the Playstation brand as a pillar in the CE industry, it's still a potential issue. I certainly wouldn't blame any business for wanting to test the Wii waters a bit, because theoretically, it should be a damned good platform for broad sales. And I wouldn't blame them for altering the direction and content of the games to fit the tastes of this new, massive audience either.
And I'm not sure where you're getting "anger" from. I'm annoyed by the situation, but I promise you, I have nothing but respect for the hitmaking company behind the system. The Wii is a brilliant product, I just don't like it.