That's why its #1 in sales by a HUGE margin. People buying this with family use in mind are gonna buy 4 of every accessory, its not cheaper.
I agree with you on the rest of the stuff mostly. If Nintendo ups the ante with a system that has HD graphics and improve online game play, it will take over the world. I think we'll see more games that require intense graphic capability. Game makers will be more willing to make the Nintendo version when the system can handle what they want to do.
Let's not forget, Wii has sold as many as the other 2 combined...from a business standpoint that's huge.