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No this is not good. Yes it is important for MSFT, Sony, and nintendo to present casual events like Kinect, Move, etc but they also need to present stuff to the hardcore audience. Nintendo has been presenting hardcore stuff with Nintendo Directs but if they do nothing for E3 then a lot of thunder will be stolen because everybody will be talking about everything else and Nintendo will be criticized for a lackluster performance.

You are right the most important thing is to advertise to the mass market but ignoring hardcore gamers which are usually the early adopters is not smart either. There must be a balance in supporting both casual and hardcore gamers.

Don't forget how much hype E3 generates.