I don't know though how you can write this, and then follow it up with this below...
Isn't that the entire crux of the issue though? I think being in Europe maybe you guys don't quite understand the true phenomenon the Wii has become in the United States; it goes beyond price and marketing. I can't help but notice some of the regional correlations between a lot of the opinions in this thread.
You make it sound as if it is different in Europe, but that is nonsense. In fact, in the U.S. the 360 is holding its own against the Wii much better than in any of the other regions, where the Wii has become the best selling platform already.
I'm just pointing out that there are three factors:
1. features
2. price
3. marketing
Together, they produce value. Each contributes to the success of the product. Right now, the Wii has a rare situation where it has all three very right. Its features are special, but they are also available for a very accessible price, and Nintendo has been very successful in making people aware of their product. There's no mistaking that they have gone through significant and extraordinary methods to achieve this too, with their Alfa-mom projects and what not. Even the DS has helped towards the Wii marketing ...
It's like this - if the DS and the PSP were the same price, would you think that DS demand would drop off in a significant fashion? It is almost the identical analogue between the DS and the PSP, in terms of both gameplay variation being the primary differentiator for the DS, and the PSP being possessed of what otherwise is superior power, functionality, screen, etc... and truthfully I find it strange that with those that are contemptuous of the Wii, that the DS seems immune to their feelings on price/value. Are these not at the heart of it the same concept; simply one for travel and one for the home?
Yet for a considerable amount of time sales for the DS and the PSP went head-to-head in the West, despite the DS having the advantage of the GBA factor, which I think often very much underestimated, as well as being cheaper. I'll get back to this.
More importantly, the value difference between the DS and PSP is smaller, and got smaller again as time progressed. A stock PSP without an additionally purchased large memory card isn't that useful for multi-media purposes. The PSP may have a good screen, certainly tonnes better than the DS - but that was only until the DS Lite was released, which has two even better screens, and their combined resolution is comparable to the PSP. More importantly, one of those screens is a touch screen. The PSP only has the analog nub to counter the DS's pen.
Now, the handheld market has been dominated by GBA, and consequently, there is a precedent of people still enjoying relatively simple graphics and not expecting much from handheld gaming. This was a big advantage to the DS, which not only is compatible with the GBA so games can be plugged in directly and continue being used on a nicer screen to boot, but at the same time DS games look great to people used to the GBA.
In many respects, the position of the PSP in the handheld space is very similar to the position of the Wii in the console space. This probably sounds strange, but in terms of handhelds the PSP did things very different from its only competition, and the result was that it created its own market. I'm personally a good example of this, because if it wasn't for the PSP, I probably still wouldn't have owned a handheld to this day. I'm 100% sure that I'm not alone in that either.
The PSP expanded the handheld market, and I wouldn't be surprised if the PSP and DS both expanded the handheld market in equal measure. Just look at Japan alone, where the GBA reached 15 million, and the DS is currently at 20 million, with the PSP at 5 million, combining to 25 million, which totals 10 million over the GBA, not yet three years after both handhelds were released, and good prospects of at least 2 years more worth of decent sales.
In contrast, the difference between the Wii-mote and the sixaxis controller is considerably smaller. A lot of the games on the Wii could be done almost exactly the same on the PS3. Also, the PS3 already through the PS2 has a vast array of Guitar Hero, DDR, SingStar, EyeToy and Time Crisis type games that have brought casual gaming to consoles much earlier, as well as backward compatibility with the PS2, a vast collective memory of good experiences and favorite franchises from its 120.000.000 sized installbase in the previous generation, and so on.
But because the Wii was easier to develop for, and its only unique feature was the motion control, all development and marketing efforts focus on the wii-mote, causing it to mature early, and with the low price, and relatively quick and cheap development cycle, it got all these features into customers hands early too.
I agree with you that we can learn from the handheld generation, but you have to be both careful and precise. There are many interesting paralels - think of the PSP's library of PS2 games, according to some a mixed blessing, but without it it's library would have been much, much smaller and it has definitely contributed to its success. Microsoft is very clearly and has been since Xbox1 trying to benefit from PC development in that respect, also through shared development tools that are very similar.
But there are so many interesting paralels, and not just the one of having a unique control method. If the PS3 had been $250, then would the Wii even had had the time and chance to pick up a buzz from the street, before everyone started to massively replace their PS2s with PS3s, which they could have done almost painlessly because everything is so compatible, with nicer saves management to boot, some good early games, integrated bluray, webbrowser, upscaling and what not. And with the market expected to grow so quickly, I think we would have seen much more attention from developers much earlier, also on the PSN games side of things.
The impact of all that is much more significant. So I'm pointing out how important price is for the Wii, not because price alone matters, but because of the effect of price in the myriad of other factors is very significant.