That's going to be difficult, considering that I'm not sure you even considered Wii 1 to be sane decision, despite its obvious success. However, as I said before, if Wii 2 is to Wii as DSi is to DS, then continuing with some variant of the current hardware is obviously in their best interest. If they go with that kind of strategy, they don't want to confuse the customer about whether or not she can continue using that Wii Fit she spent $80 on.You'll have to convince me that there's a sane category in which fixed-function TEVs make sense in a Wii2 piece of hardware.
To answer your question, Iwata wanted power consumption minimized in order to minimize the profile of the machine and allow it to be always on without a significant energy footprint. Programmability simply requires more transistors. I've read estimates of Flipper's logic transistor count as being around 26M. By comparison, the X300 has 75M, and the X1300 has over 100M. Features require transistors, pure and simple.
But it's a choice a lot of people didn't make. A lot of Wiis have been sold so far. And, by the way, I don't think programmability gives you "substantially" better graphics, not in the eyes of most people. You have to have programmability plus enough fillrate plus enough RAM to make a big difference.Giving drawing a few more watts to get substantially better graphics is a choice I think pretty much everyone would make.
Fixed-function GPUs will turn 10 in August. So, I'll show you a Wii around then, assuming Nintendo can stay competitive for another few months.Prove me wrong with a convincing example of a games-system that'll be competitive while being tied to decade old technology!
The only thing that matters is how fast customer demand moves.Technology moves forwards too fast.
Don't get me wrong. I do think that eventually, Nintendo will include a more advanced GPU in its products. I don't think that time has arrived. Demand for HD consoles is still stagnant, suggesting that the current, brief dip in Wii sales is not due to an accelerated demand for new graphical technology. I don't think that improved graphics will be the buzz-generator for Nintendo's next console, not at this point. Maybe in another few years it'll be time for a substantial shift.