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It's not unique and enticing enough for casual gamers that made the Wii so successful to even care about as there are so many other products competing for their attention.

It's not powerful enough and it doesn't have (nor will it ever have) the diverse lineup of 3rd party games for core gamers.

It has been too expensive for families and kids.

Basically, it's been a Nintendo fan's system only, just without many games.  It'll eventually hit a price point that may be appealing to families (I think it's close there now), but by then most support will be gone and there will be other buying options for them as well.