The biggest flaw with the wii is it being vastly underpowered compared to the PS360. This inherent flaw affects how it is being perceived by gamers and developers alike; it is seen as a child's toy, not worth doing any quality work for. Not worth being taken seriously. That is why we see mountains of shovelware put on the wii. They figure wii owners are just little kids who's mamma and daddy bought then a toy for Christmas or for their birthday. They see those who bought the machine as ignorant. They don't see us as discriminating consumers who know and appreciate good quality in games. After all, didn't we choose an inferior product?
Gamers look at the graphic now on the wii, reflected in the games now available for it, and very nearly puke. No matter how good the graphic get on the wii, it will still be miles behind what on the PS360. There is a reason these games are called VIDEOgames! That is SEEING them is extremely important than PLAYing them.
Everything Atomic said, mostly hinges on this fact. Yes, I believe Nintendo made a grave error in making the wii so technically weak compared to the other two games machines.
With alla this said. I still love my wii and enjoy it a lot, but I accept it for what it is, it is the wii, flaws and all. I think most of us need to accept it for what it is and move on. I think it's time to, it has been a year already. And if you or I cannot accept this fact, than I and others can go buy a 360 and/or a PS3. After all, I believe the wii was originaly meant to compliment its more powerfull relatives.
The wii is a closed system, it cannot be technically updated or rebuilt. I think what Nintendo needs to do, if they see need to, is to acknowledge this mistake and find ways to work around it, though it. It the best anyone can do, as individuals or huge multibillion dollar corporations, like Nintendo.