Nintendo didn't just innovate with the Wiimote. Nintendo innovated in marketting and promoting the console to people that stop playing games or never played them before.
Also it's giving developers a steping stone to increase in size and compete againts major publishers un equal levels. Even though XLA is great for indie developers, moving from XLA developent to true Xbox360 development is almost impossible to many developers. On Wii, the move from WiiWare to actual Wii development is easier.... It doesn't matter if later on the developers are able to make PS3/360 games, but they were able to make a solid step developing for wii.
Innovation isn't just a device in the case of Nintendo. their approach to audiences is different and is generating great results
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