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SNES wasn't a failure. It was the first time that Nintendo faced a real competitor and both fight for the same market, because of that the market was splitted in two, also you mention Galaxy as an example of a games "jamed" check the sales it's one of the best selling games of this generation.

Also what Wii/DS consumer are we talking about?, most of the "casual" consumers that bought products like Wii Fit, Sprts, Brain Academy. etc. only bought them for the hype ut never bother to support other options in entretainment for the same system; You can't sustain a bussiness model like that.