Dr. Evil:
I understand you perfectly, but your POV is the totally wrong one. You're looking at Wii from the top as a console, while it isn't really that in the same sense like say PS's are.
The point to begin with is the user. The user wanted a cheap toy which has a nice funny gimmick of swinging a remote and seeing how your movements make some stuff happen on screen. That's why I bought it too, not as a super-powerful gaming machine. All this technical talk is senseless, because Wii shouldn't even be really viewed as a console at all. It is a toy, a home appliance, but not a console like Playstation.
The problem is, that gimmick generated huge sales. It _IS_ fun in the most elementar way and surely the "real" console gamers are pissed off for not having the feature that a stupid toy has. THAT is why the topic always ends up in feature wars.
Noone out there even cares about the innards of those systems nor do they miss anything. The only people dissecting everything and looking for negatives are some groups of people in forums like this one.
Normal people see it like this:
Wii = simple funny remote thingy where you can have some sporty fun and fun with the kids or your buddies, everyone can use it instantly too.
XBox = gaming console for shooters, racers and such with nice looking games. No wiimote thingy though.
PS3 = most advanced console, HD player, loads of features that many don't even understand and let alone use, expensive but mindblowing gfx. No wiimote thingy either.
Try to think like a non gamer for a second. What will those people buy? Depends on many things, but most average people will automatically go for Wii. Because even the GFX on Wii are nice to regular people, they don't even see any huge difference to some much better looking 360 game for example.
EDIT: heh, missed the post above mine, he said it perfectly
Telepatic abilities there? Crazy.