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Purple said:

1) It accounts for one third of the raw material cost of the console. There are no specific figures but you can assume it would have taken up a huge part of R&D costs.

It is in no way a small amount.

2) You admit then it offers minimal function for most games.

3) A replacement gamepad costs ~$150. Half of the price of a new console.

 

bolded: that isn't an argument at all, because as I said, you are paying just a little more for something that adds tons of possibilities. games have been developed without the game pad in mind for decades, so you would expect that games developed with tradicional controls in mind wouldn't make amazing use of the gamepad. and even then there's off tv. what matters is that there are games that use it greatly and the ones who don't still offer you a better experience.

say whatever you wan't, slapping a pro controller/wii mote + nunchuck instead of the gamepad would only reduce retail price by 50 dollars.