I think there'a a little truth in both sentiments (it is partly 3rd parties and partly Nintendo's own fault). I can certainly attest to the fact that there are a great many crap games coming out today and I find myself never finishing most of them out of boredom or frustration.
But Nintendo did make a choice; they did choose to make the one platform that used a different recipe and implemented older hardware and they knew full well that the only other similar platform this gen woulr be their very own DS and this placed 3rd parties in a difficult postition.
They were/are forced to leap in one of two directions, possibly with the risk of a tough recovery either way.
It is always hard on publishers and producers or manufacturers when markets diverge, as well as the predicament some consumers may find themselves in.
As long as Nintendo opt to be headed in a different direction, there will be, for most dev's, incentive to build their games around the possibility of publishing on three platforms rather than one and the eventual decline and halt of PS2 sales is not aiding Nintendo's cause either.
We'll see how it pans out, nothing is dead certain in regards to 3rd parties but like I've said quite a few times now; any 3rd party who hasn't spun around by now probably won't this gen, not in a big way at any rate and this goes both ways of course (allthough, in my mind there is no doubt who drew the shortest straw so far). Nintendo's sole task from here on out should be shedding that weighty and somewhat unfortunate image they developed, intentionally or otherwise, in the previous two gens in order to gain back the favour of 3rd parties.
But, let us not forget, after all, that Nintendo once dominated the industry like no one else ever had and still haven't. 
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