I'm sure apple could create a great console, one that probably happily marries nintendo's creativity with the others systems power. Their problem is breaking into the software end of things(also their problem in the pc market), they'd need to open game studios, buy a few and start making 3rd party deals, and it's a tough nut to crack at this stage of the game, it'd be easier if someone was leaving the party but right now that doesn't look likely.
They'd have an easier time breaking into the handheld market, they're more known for their handheld technology, they can create something that also plays itunes so people may just buy it for other reasons, they'd only compete with two other systems, and it's cheaper to bankroll portable games so they could jump start more projects, plus the handheld market is a litttle more casual thanks to the ds and it would has a comfortable time fitting in. If the thing had a sweet harddrive played music and videos, and downloaded games, and they managed to jump start a few decent titles I'd definitely consider picking it up.
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