@ thekitchensink - I think having no controller at all would be a deadly mistake for two reasons. One, the Wii Remote set up is now standard (or will be in a few months when Wii crosses 50% marketshare) and people see that as the defining aspect of Wii. Not having a controller at all may actually increase the barriers of entry - most people know how to use a TV remote and most know how to shake a stick.
Another reason is that it would alienate many genres - I'm sure Nintendo could make their games work but third parties would definately give up on the system very quickly.
I think Nintendo will try to make their next controller more precise, more functional, more feature heavy but also continue simpifying. As long as they don't make the same mistakes that they have in the past - more is better, see the SNES pad then I see no reason why they can't continue their dominance or even expand upon it.
