Square's switch to Sony made sense at the time and it continued to make sense. Nintendo had chances to make a console good enough to host a mainline Final Fantasy game after the N64 with Gamecube and Wii and they didn't. However like the article says some of it most likely has to do with the way the Japanese do business and their concept of loyalty. That one fatal hit of the PS1 and it's developer-friendly nature created a chain reaction. Realistically there was no going back for a long, long time.
I do agree that Xenoblade is Nintendo's Final Fantasy now, not that it matters in relation to Final Fantasy though since platform exclusivity is slowly dying. That being said, Xenoblade doesn't really attract the mainstream audience in the same way.
It is cool that these games are coming to Nintendo though.
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