GameCube had very strong multiplat support from Western devs and strong exclusive support from Japanese devs so that kinda rules out the whole file size argument.

Not really. Western developer supported the console, but there were lots of japanese games that were released by third party exclusively on PS2 includings: Silent Hill, Onimusha, Devil May Cry, Grand Theft Auto (Not Japanese, I know), Dino Crisis, Fatal frame, Pro Evolution Soccer, Tenchu, Final Fantasy and Tales Of, Driver (not Japanese either), Castlevania. I don't know about you, but I felt a little envy of my friends who owned a PS2 because those games. 

Not really. Western developer supported the console, but there were lots of japanese games that were released by third party exclusively on PS2 includings: Silent Hill, Onimusha, Devil May Cry, Grand Theft Auto (Not Japanese, I know), Dino Crisis, Fatal frame, Pro Evolution Soccer, Tenchu, Final Fantasy and Tales Of, Driver (not Japanese either), Castlevania. I don't know about you, but I felt a little envy of my friends who owned a PS2 because those games. 

Idk, in theory that sounds great but we already saw such a plan with GameCube and that didn't work too well. It was powerful, affordable, had  a standard controller, strong western support (EA/Ubisoft/Activison/Warner Bros/Midway/Acclaim/Atari/Eidos), Resident Evil exclusivity, return or Japanese devs that primarily ignored N64 (Namco/Square-Enix/Capcom/Konami), along with the introduction of games u just referenced like Metorid Prime & Eternal Darkness.

GameCube is the closest thing to what u describe that we have seen and it did rather poor even with being $99 for the majority of its life. To me, that's a pretty good indication that Nintendo should not strive to be like the others and instead needs to offer new things to differentiate from the competition like NES/Wii.

He's said lots of shit about everybody.
He's complimented Nintendo a lot of times too. Same with everyone.

He likes Nintendo, but he's not a Nintendo FANBOY, by any means.
He tells the truth, no matter how much people don't want to hear it.

No, they were not lucky with Wii

Luck: success or failure apparently brought by chance rather than through one's own actions

That in no way describes Wii. You can go back and listen to Iwata at E3 2005 during the Revolution reveal and he perfectly explained what would happen during the 7th generation. Nintendo didn't get lucky, they came up with a desirable product and had great execution and marketing, that's not luck.

GC had Madden, FIFA, NBA, NFL Street, Medal of Honor, Need for Speed, Burnout, Call of Duty, Tony Hawk, Spyro, Crash, Spider-Man, X-Men, Prince of Persia, Ghost Recon, Splinter Cell, Rainbow Six, Rayman, Mortal Kombat, The Matrix, DragonBall Z, Turok, Hitman, Tomb Raider, Soul Calibur, Tales of, Pac-Man, Resident Evil, Viewtiful Joe, Okami, Crystal Chronicles, Twin Snakes, Sonic, etc. it got a ton of multiplat releases from Western devs along with a bunch of exclusive/timed exclusive titles from Japanese devs and it really got then nowhere. There really is nothing that suggests a Nintendo version of Playstation/Xbox will do anything significant for them.