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Good read, though you forgot one important thing:

Software.

3rd parties have only limited funds and now have to consider big Wii titles. Money that's put into Wii games can't be used for PS360 investments.
So where 3rd party devs originaly didn't have major investments planned for Wii, now will have to put money into Wii development.

So there Wii is definitely competing with PS360.