I wondered about this question too a few months ago. (I even made a thread about it, but there was not so much interest for that topic back then... but I guess that was because my post was not that well explained)
I think you're right Bod. I think everybody would have been happy with such a decision except the hardcore gamers. Especially for publishers, because they could sell to a 120 million audience instead of one of 10 million. It would even have been better if there were no Wii, because the new features of it may would still make quite a lot of consumers shift so that Wii could get it's niche.
But if there were nothing so special like the Wii, Sony could have destroyed it's competitors with such a tactic. If they would have made clear after the anouncements of the 360 and a new Nintendo console that they won't release a new system til 2011, which developers would have supported the new consoles?
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