Okay, I agree the flow isn't the best. I'll consider this a rough draft, and see if I can make a better article for this later.

Any suggestions on how to improve this?

I gotta reread it again; don't wanna give you misinformation. I'll write on your wall or somethin

If they are selling to other CGC it is then they are closer to being right about what makes the games sell. I thought that was the reason for the developers to make games on HD consoles, they don't have to bend their mind  to create things that non CGCs want so they can do what they enjoy and what they want.  

I do realize that even within the CGC opinions and feelings about what make a game good or great is still subject to a great divide, but it does make it easier as those values are far more likely to be similar to their own.

I suppose there simply isn't enough growth in the CGC segment of the market to produce tremendous growth to accompany the growth in budgets.  But all CGC games successes aren't big budget are they?   Plus at least a decent segment of the CGC(at least on this forum)  seem to realize that.  I believe the problem is mismanagement of resources.  I'm sure if they said make said game for this amount of money they most certainly could but why when you have investors who think 20-60 million on a single game is a worthy investment?

The thing is that they think their group is a lot larger. Heck, they even used to think that the mainstream they claim to hate now would flock to their games once the graphics got good enough (the main reason behind the push for HD movies). As for budgets, it doesn't matter if it's a worthy investment when almost every game costs that much. The risk just raises.

Why don't the Publisher's just offer online surveys to each person who downloads the deomoes or purchases copies of their games? If they really wanna know what people want, why don't they just ask them? The optional and written response surveys could be offered digitally over XBL or PSN.They could ask questions, pay attension to their customers responses and needs and not waste money on features gamers don't want or enjoy.I for one would love to tell Criterion,Capcom and Namco what I don't like about their current Burnout, Resident Evil and Tekken iterations and how hey should fiix hem.

That is one good way to start. Heck, that's one thing High Voltage is getting right. They talked to people after The Conduit came out to see how they could improve the game. More developers should do that... all of them if possible.

The potential pitfall of that is that the people most likely to download demoes, or answer optional surveys are themselves core gamers, and their answers will likely reinforce the beliefs of the developers.  This causes a snowball effect where the developers make games for a specific audience, and that audience convinces them to keep making the same games for them, which leads to developers making more games for that audience, ignoring other potential audiences.

That's why I wrote "to start". They would have to go further, and, for one thing, learn that even the mainstream on the HD systems is not what they think.

There tons of games that are well  reviewed games, loved by enthousiast and developers, in fact they are the best selling games on the HD systems.

To summarize the OP, this is what sells games according to him.

directness in the control and gameplay 

good design

local multiplayer

for many console games,

fast and easy online for many games, immersion defined by imagining you are in this world,

and a sense of accomplishment with beating a game or level.

( Mod NATION RACERS should be at 20 million next year based on your summary)