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Lit09 said:

But if you get a rebuffed Hard Drive for $20 and an HD/AV cable cheap for the 360, then both the prices will be around the same price and the 360 would still offer a lot more.

Here's the problem in your worldview. Perhaps you're just substituting your own preferences (that's fine), or you're only looking at this from a tech-sheet perspective (that seems to be the case), but "value" includes much more than just a list of features/price. For starters, recall that most of us buy game consoles to play games, and the Wii has tons of games that its competitors don't. This changes its value radically, especially for the "broad audience" that you spoke of (who demonstrably have little interest in the HD consoles' offering).

To put it in perspective (and use a HIGHLY incomplete car analogy), the finest sports car in the world ain't worth jack if you need a really reliable pickup truck. Put alternatively, most people see a console's primary value in its games, rather than its bells and whistles, and the Wii's games apparently appeal to them more.