Well I answered the question and I feel like the premise is ridiculous.
The question of whether you worked for Nintendo was legit because I don't consider myself a part of "my home company" of sony just because the last 2 generations I only bought a PS1 and PS2. I had an NES, SNES, Genesis, but not DC, N64, GC. I thoroughly enjoyed Mario Kart and would have bought it if they had it online (I played it with friends when we got together). I think you've missed out on a lot of "quality" by refusing to buy anything but Nintendo's systems. As much as I bash microsoft and hope for them to lose in just about everything they do, I would consider getting a 360 if they let you upgrade hard drives more easily and didn't charge for online games. Blue Dragon intrigues me, as do the plethora of shooters that are bound to include one I'd like.
I don't think you should rule out purchasing other consoles, and I don't think you should constantly question what Sony is doing and look for any opportunity to say it's over. No, they should not have released an even MORE expensive console. Of course not. Their main problem right now is the pricepoint of the console. The 2nd problem is lacking some more console selling games. Those are coming, so until those games come and don't sell, can we stop the 2nd guessing and the outrageous questions of whether they should have given up on the console race entirely (which is what you are suggesting).
