Nintendo "deserves/earned" the top spot not for their innovation of the controller and what it can do. No, it is because of the new gamers crowd that they brought in.
Parents see the PS3/360/Wii on a shelf, and asks:
"Which one will my 2 daughters like?"
"Which one will stimulate their minds and keep them moving about?"
"Which one will the family as a whole like the best?"
After being told which one, imagine the parents' surprise when they are told it is not as expensive as the other ones as well.
And this in a nutshell is how Nintendo has been able to outmanuver both Sony and MS while relegating the Third Party Developers to near obscurity all of whom are focusing on an ever narrowing demographic.
While the rest of the industry is trying to streamline and condense gaming in hopes of creating a formulated system like that of our cinematic motion picture industry, Nintendo has actually courted, not so much innovation, but imagination in the consumer. Nintendo is reminding regular people why they bought a NES back in the 80s. The Wii and DS are a knock out punch and the industry is livid with anger and contempt for this company that they see as not only refusing to play ball but erroding the clought third party developers feel they have with companies like Microsoft and Sony.
Who knows how things are going to turn out, all we know is the that Nintendo is going to win and will keep winning for generations to come. Will that mean core gamers like us win too? Who knows...