There's a lot to respond to (that's a good thing), so I'll start with one chunk. I would argue that, contrary to your thesis, the DS has done more for hardcore gaming than the PSP has.
It's offered us novel ways to play games, letting us do things that simply aren't possible on any other system. TWEWY, Ninja Gaiden Sword, Elite Beat Agents: these are all "hardcore" (hate that term) games that couldn't be done anywhere else. Look at it this way: do you want a Portable PS2, or do you want a system where fresh ideas can thrive?
This ties in to the Wii. The system is new. It can do things no other console ever could. And with time, developers will take advantage of that. Remember, 3rd party DS games didn't get good until about two years after its release, as developers had to wrap their heads around the system. The Wii will be the same. True, neither system can offer you the visuals that their rivals can, but gaming is far, far more than just pretty visuals.
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