With hindsight Nintendo could have done several things better with the Wii, but the same can be said of pretty much all platforms.
IMO Nintendo should have made the Wii more expensive, the excess demand for the Wii at first would have guaranteed sales despite a higher price, I'm thinking maybe £200 ($315) rather than £180 ($284); Nintendo did raise the price of the Wii last year, but I think that was due to the weak £. When Wii Demand and Supply started to meet, Nintendo should bring the price down to £180.
Using this higher price, Nintendo should have put at least 5GB of internal storage on the Wii (roughly 10x what it has ). This would allow for a higher WiiWare size limit (200mb maybe?) and possibly Sega Mega Drive CD games on the VC. Given the higher price, Nintendo would make a similar (or maybe more) profit on each Wii sold.
Nintendo should have also made the Wii output 720p and maybe made the Wii slightly more powerful so games would look as good as they currently do, but output at a higher resolution.
Well that's my thought, but Nintendo has done a fantastic job with the Wii and I am pleased with their success this generation.
