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That's a pretty good analysis of why Nintendo does so well. It's absolutely true, outside of trying to establish a franchise Nintendo tends to put only one iteration on a console, and that's because if the game is good enough it should last for years.

 

As for the end of sequelitis, no - we aren't that lucky.  The best we'll see is them being spaced out, a-la Nintendo's style.  If CoD takes a sudden down-turn what they'll do is release fewer games rather than just end the series.  Frankly, the fact that sequels are easier to make than new franchises will keep them going for a long time.



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