"snobcore" : you know, I was stalking this thread waiting for someone to describe me with that word. Seems like a significant part of nintendo fanboy lingo these days.
To answer your point, I never said that casual games shouldn't be made but when you look at financials like EA's and their CEO's most recent rant, you know its wii-blown full steam and don't expect games like Battlefield to be coming to wii from them, its only going to be casual panddering all the way. Like you explained, these generate a healthy profit, hence, thats the quickest way to please investors because EA has nothing else to fall back on unlike Sony and M$.
Why would the core market have died off with the ps or ps2? Sure, there were casual titles, but there were also so many titles that I don't remember anytime in the reign of the ps/ps2 that core gamers were eagerly waiting to hear the announcement of another core title like what the wii is having right now? You see the difference. I for one am a HUGE JRPG fan and back then, I couldn't even keep up with the sheer amount of them that were released in that period. To this day, I'm still catching up!
I'm sorry but saying that ps/ps2 = wii is EPIC FAILURE. They just aren't the same. I don't remember anyone even been worried about casual games during that period because they just weren't as significant as they are now. The fact that all gamers talk about now on sites like this is the influx of casualware shows that there's trouble looming. Nintendo's E3 was enough to show what the heavyweights are all about now.
Unfortunately, your memory is quite flawed if you don't remember gamers waiting for games on the Playstation and PS2 ...
Even with the much lower development costs and shorter development cycles, it wasn't until about 2 years after the Playstation released that it really started to see a ton of support from third party publishers; and it wasn't until (about) its third or fourth year before its support was that crushing over what was available on other platforms.
Even though the PS2 was expected to be the dominant platform, it wasn't until its 15th month on the Japaneese market (9th or 10th month on the North American/European markets) where it really started seeing the steady flow of games that it became known for; Dreamcast fans used to use similar arguments to what HD fans use today to mock the PS2 for having a tiny and weak library.
The "Casual" argument wasn't used against the PS2 because the people who are currently using that argument favoured bashing similar games as "Kiddy-crap" ... Same immature frat-boys, different argument.