"This leads me to my next point: If I am right in what I'm saying, and I managed to figure this out, I'm sure Nintendo's bright minds have ALREADY thought of this and have been hard at work with the Wii 2"
A top Nintendo exec (cant remember who, might've been Miyamoto-san actually) has already said that they are hard at work designing a successor that will give people a real reason to upgrade
Have confidence in the big N, they will deliver the goods, and as for if it succeeds, it has the same advantage that the PS2 did so it should be fine.