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This is going to sound cliche as hell but gaming would be much better for core gamers and there would be no casual market if the Wii had failed. 

There would be more core games and high profile titles and less lame party games and what not. 

I'm not going to say I wish the wii had failed, but I really wish it hadn't turned the industry into a "casual" industry. I want more Halo, Grand Theft Auto, new high profile IP's, etc. and less "Kinect pillow fight" "Wii Party 27" and "Trip to the Zoo move" or whatever is coming out.