I didn't say either of those things, mainly because I'm not stupid.
As no-one called you stupid or implied it, why even make that remark in this thread?
What I actually said that the fundamentals of 3D gameplay were so refined that the additional power doesn't radically change things...
What are the gameplay fundamentals that can really be tremendously improved?...
It makes aiming, punching, etc actually different rather than prettier. It's currently crude and needs refinement, however, unlike adding bump maps or improving facial animation, it's a new take on the fundamentals rather than a surface improvement or iterative refinement.
You have not actually contested that statement, and I suggest that is a much more interesting thought than the straw men you are currently arguing with.
I haven't contested it because I don't disagree! Yes, Wii could be better used. I even had my 'straw men' say as much! I entered the thread challenging Squeak's view on the limited benefits of better hardware.
I certainly disagree with you that games have peaked and the only to progress them is input methods. You rattled off a nice list of features last gen had, but how many last-gen titles brought all that together to superb effect?
Had incredibly lifelike driving sims - so lifelike that they haven't been improved upon, and with incredible AI racers, in large, immersive open worlds?
action flight games with buttery smooth controls - and in large, immersive worlds against incredible AI?
immersive open worlds - with intelligent AI that 'lived and breathed' rather than am,bled pointlessly, and which grew and developed in response to your actions so you could shape the whole world?
... etc. I can say the same for all your points. Taken in isolation, selecting the best examples from every game, perhaps your points are matched. But no game could afford to bring them all together. Sacrifices were made across the board to fit the limits of the systems.
I don't think it's because developers are just playing it safe or not utilizing all the available power.
I completely disagree with this. We even hear from devs how publishers are very conservative! Costs are so high that experimentation is a serious gamble. Look at the Wii game market, how developers are cloning existing successes in the hopes of mirroring them. The result is lots of untouched potential in Wiimote, games that could be made but aren't being made, and lots of top titles barely benefit from Wiimote.
But this is a tired old discussion raised before. Look out how the increased power of previous machines allowed new games. Look at all the new genres that spawned on Amiga, impossible on earlier hardwares and only conceived because the developers had rooms to stretch the imagination. It's clear that a performance leap allows unique game experiences! Back then costs weren't prohibitively high, and people could experiment in creating God games, dungeon crawlers, puzzlers galore, etc. Back in the 80's single people could push envelopes publishers wouldn't touch, like the creation of Elite. That's not an option anymore, or at least wasn't until the roll-out of download and homebrew services.
The performance advantage can't be fobbed off as providing nothing but tarted up visuals, just as Wiimote can't be fobbed off as providing nothing but mindless minigames. There is loads of potential in these systems which no-one should ignore, regardless of what actually gets released! One only needs use one's own imagination to come up with ideas that are processor hungry or need a clever pointer/motion interface. If you're only going to gauge potential by what's released, Wiimote is only good for minigames and shooters just as much as this-gen is last-gen with tarted up visuals!