Casual games have been out looong before Nintendogs and casual and core can happily co-exist. Look at the PC game shelves for crying out loud.
PC the pinnacle of true Core gaming where the games like Crysis with graphics so intense your PS3 can't run them sits besides Nancy Drew Mystery of the Mountain and Desktop Car Racing. And don't forget flash games where there's a massive casual market.
All you're seeing is that balance of casual and core being brought to the consoles to a degree not seen before (PS2 enjoyed a huge casual market too). Except since 'casual' is this 'new' great discovery for console game makers they are all rushing to supply it - and mostly with crap games that are quick to get out. In time it'll settle into the sort of balance PC gaming has had for many, many years.
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