It's not quite a given that the Wii will dominate this generation, but I'd say it's the likely case.
MS has the most to lose right now. The PS3 could turn things around considerably with a $200 or $300 price drop, which I'd consider inevitable within 3 or possibly 4 years. At that point, however, the war may have already been run away with.
The 360's reliability issues will strangle its performance. As the installed base grows in size and age, it will take front-and-center in the gaming media. The Microsoft RROD defense force will extinguish itself by the time they all have at least one failure and have to pay $140 for repairs.
The funny thing is that I want a 360 and would buy one today if there were no reliability issues. But there are and because of them, the 360 has to be considered more costly than the PS3 (which doesn't have any games I want yet).
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