There are some flaws in your retro-plan. For one, the controller. The wavebird came later because that's when the technology was feasible and affordable. $50 for a controller wouldn't go over well, at all, in 2001, especially on a Nintendo console. I say 2001 because the 2000 launch date is simply unrealistic. That extra year of tech gave the GC a noticeable improvement in capabilities over the PS2. Plus, game development times can't be sped up with a magic wish wand. We can say a 2000 launch would have been better, and it would have been, but there's no reason to believe it would have been feasible for Nintendo, not while maintaining the quality of the GC. (and it was indeed a very high quality console with great games)
I still think it could have had more success with a good design and DVD playback, but only if the cost remained lower than the PS2 launch, and dropped to $199 within a year.
But if price could not be kept low, a nice modern design would have helped still, by at least 50%. Simply because people DO "judge a book by its cover." To think a purple box would sell to a broad audience was very poor foresight.
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