The thing is that he's only considering a few reasons Nintendo is doing this, and ranting on about them. There are other possible reasons for this.
I for one think Nintendo found that 50 million people were fine with $250 for the system and Wii Sports, but for the rest the value might not be there even with the content.
The Blue Ocean is just one of many strategies. Nintendo disrupted to keep gaming around, not to own the competition through BOS. They aren't about making the "game industry" die that Maelstrom wants. That's why Nintendo is working with third parties.
A flashy-first game is awesome when it comes out. A great-first game is awesome forever.
Plus, just for the hell of it: Kelly Brook at the 2008 BAFTAs








