I don't see why you can't aim for both , in theory you got to have both to some extent to make a decent game ( Immersion without interaction would be a movie and interaction without immersion would be Pong).
I think Sony and MS are capable of achieving both to a greater extent than Nintendo , on the interaction front I think Nintendo is champion because they've obviously focoused more of their resources towards the interactivity apporach at the cost of less immersion , it paid off.
Sony more so than MS has also put [some] effort into interactivity eye toy to cite an example , MS is coming out with their own version of the Wii mote.
I think Sony and MS have got the immersion side of things sorted , they can only do it better . Once they implement their respective interactive technologies well then I think they'll have a good balance of the two.
However I don't think the Wii's hardware will allow it to offer an immersive experience , I don't think it's user base particularly cares , so there's no love lost their. This might present a problem to Nintendo however who probably want to dominate all segments of the console market.
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