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The problem with using the PS2 to try to steal casual user base from the Wii IMO is this: It also encourages 3rd parties to continue making titles for the PS2 - which will all also be on Wii. Effectively it makes it even MORE cost effective to make Wii games, because they can continue to port them to PS2 (or vice versa).

Short term this might work somewhat for Sony, especially in Europe, but irregardless PS2 is slowly dying while Wii quickly rises so I don't think it'll hurt Nintendo much longterm, and may in fact benefit them more than Sony.