@ Goddog: This line of thinking is what seperates integrated software and hardware companies (Apple and Nintendo) from non-intergrated (Microsoft and Sony).
It's also a line of thinking that is being disrupted right now and it's the very reason why Nintendo is going to continue to do well as the other companies see the Wii's success coming from it's motion controls. Guess what! It's not.
An integrated company builds their products thinking about both software and hardware. The nunchuk was born because Retro Studios said they they could not build a Metroid Prime game with only the Wii Remote. The iPod and iPhone was always about the software as much as it was about the hardware and they play off each other.
Non-integrated, a great example is Sony. They built the PS3 as being the best console they could make and then dumped it onto the software teams and said 'make games for it'.
I don't think you're thinking about this very well and if you represent either Microsoft or Sony's thoughts - Then that particular companies next console is doomed to fail
