Your question for the topic headline contradicts the question in the topic itself.
Happy, yes but that depends on how many more games they casualize, Zelda was a disapointment and SMG was too easy.
Betrayed, no. I understand why they have done what they did. Without doing it they could have dissapeared forever. Casuals saved the company and lets be honest, Wii Sports, Fit, Nintendogs, Brain Training, etc are remarkable for what they offer. New styles of games and self improvement.
Now, you mention PS360 owners feeling betrayed. Isn't that because they are either late to get a PS360, and consequently felt betrayed not neccessarily by Nintendo but by third parties, or had rejected the Gamecubes image 5 yrs ago and went PS2 long before this gen.
Lastly graphics, hmm, who's responsible for this? Nintendo, 3rd parties, consumers for not being willing to accept it?
“When we make some new announcement and if there is no positive initial reaction from the market, I try to think of it as a good sign because that can be interpreted as people reacting to something groundbreaking. ...if the employees were always minding themselves to do whatever the market is requiring at any moment, and if they were always focusing on something we can sell right now for the short term, it would be very limiting. We are trying to think outside the box.” - Satoru Iwata - This is why corporate multinationals will never truly understand, or risk doing, what Nintendo does.
