You're working off of the assumption that Nintendo will not introduce any new franchises, then. Which is equally ridiculous, seeing as they've introduced new franchises with every single iteration of their systems, and each has done stellar. They haven't even released games in some of their more recently devised franchises for Wii yet (no Animal Crossing Wii yet, or Pikmin Wii, etc.).
As for HD adoption, again, it's a matter of value. To a normal consumer, better quality visuals is not a significant value. Television has a job to do, and that is to entertain them. Unless the HD visuals can be used in a way which increases their utility over without them, the majority will not care about HD. This is why getting people to adopt the standard (or any new standard, for that matter) is so difficult: because it has too little added value over what they already have.
And as for why Nintendo would NOT make a Wii 2, the answer is simple: every single time they've gone the incremental upgrade route, they've gotten fewer sales and higher costs to deal with in return. There is absolutely no reason why, upon breaking free of that trap, that they'd walk right back into it. Whatever they make next for a home console, it will be nothing like the Wii, and it will be nothing like the PS3, either. And it will only come out when the Wii stops being a cash cow, which is a long ways off.
Sky Render - Sanity is for the weak.
