Under the circumstances, I think going the Wii route as they historically did was clearly the right move for Nintendo. They needed a refresh, the same old approach just wasn't working for them anymore.
And indeed, it paid off handsomely, with Wii going on to not only win the generation but become one of the highest selling consoles of all time.
Of course, they then took a bunch of stupid pills in 2011 that took until 2017 to wear off, but hey, every one of the big three have shit the bed at some point, doesn't negate the times they hit home runs.
A HD Gamecube 2.0 would've been far less successful than the actual Wii both in sales and profitability, and I think ultimately PS3 would've come out on top, with 360 in second place and Nintendo in last.
