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These same analysts predicted the PSP would pwn the DS...
Pachter himself has admited he doesn't understand the DS's success (some analyst...) so why should he understand the Wii's? They seems stuck in a mental rut of how the industry use to work, but not how it's working now. Pachter in particular is clueless about the entire casual gamer thing.

As far as HD penetration, I doubt that'll change anything. People will still play Wii on their HD TV's (and do even as I type), because they find it fun. The recent Neilson research showed that people earning $100,000+ predominately purchased Wii's. Umm, guess what? They own HDTVs.