"most consumers in the broad market don't really want the 360/PS3 style of gaming."
Halo3 sales numbers would disagree with that statement. Besides what is the PS3 style of gaming? There are only two areas that are really Wii specific.
Party games that are build around motion detection. These have essentially sold the Wii. On the other hand how do you want to improve them? More games, better graphics? This is not what has made them great, an ugly little game like Wii Sports was amazingly fun when played with other people, I don't think Wii Sports 2 will be "better".
The Wii control as "lightgun" for rail-shooters like RE-UC or in First Person Shooters. This is definitely an improvement, on the other hand FPS are not essentially new or different from 360 type of gaming.
I don't think the Wii is a fad but I think Party games are one. They will sell less and less. In the end classic games will decide if the Wii will win this generation.
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