1. Most of them hated motion controls because Nintendo was doing them. They'll be quick to change their minds or claim that the motion controls of Microsoft/Sony are finally good enough for them.
2. The last generation saw about 170 million consoles sold, while this generation has only seen about 100 million consoles sold (all rough figures). There's still plenty of casuals left and plenty of consumers to grab.
3. They don't care about their market position, just potential increases in userbase and profit. Kind of goes with the other point.
4. That's different. Most people don't buy Wii Fit for the balance board, they buy it for the game. Sony and Microsoft's motion controls won't be centered around one game, so people will look for other games to buy.
5. The only reason HD titles are so expensive to produce is because developers keep attempting to outdo each other with the best graphics, physics, etc., all in one game. Add in a couple years of development time, and you're looking at an expensive game to make. Most of the games for the HD motion controls will be more casual and less expensive to make. I have no idea where you're getting the pricing for the motion controls from, kind of just seems like you're pulling it out of nowhere (something haters of the HD motion controls continue to do).
