"Nintendo can't make the Wii smaller, more energy efficient or reliable without taking away parts from it."
I disagree with that and wonder on what facts you are basing this assumption. But yes they can remove "parts of it" like the BC, it's not like it is a selling point anymore. By removing BC they can remove the GC controllers ports and safe slots which alone would reduce signicantly the size of the hardware. And if Sony can produce a PS3 portable I don't see why Nintendo couldn't make the hardware of the Wii more compact. The DVD driver is the only thing that can't be reduced obviously. Still there is a lot of room to make a slimmer and smaller version of the wii.
Wii is already very small and, yes you will need to take features away like the BC in order to make it noticeably smaller. I see that's the only point you addresssed, what about the rest of my post?
Well then it's possible to reduce significantly the size of the Wii by just removing the BC and using more compact components. I don't see what is the problem then. That's possible and I don't see why Nintendo wouldn't do it.
As for the rest of your post, sure Nintendo hasn't redesigned its two previous consoles. Yes and? That doesn't mean that they won't do such moves with the Wii or the next ones, does it?
The size reduction comes at a cost of losing features, I doubt people will like that. Anyways, why didn't nintendo do a redesign with their last 2 consoles? If they were selling bad, wouldn't it have made sales go up? Nintendo is not going to reduce the size of the Wii before next gen console arrives, and even then I doubt it. If you want wee can make a bet about it. Following past moves from the manufacturer gives you a lot of clues, and they've never redesigned their home consoles before next gen console arrived. And they did it to give the console a last push and was aimed only at collectionists or people looking for a cheap and small console. Wii is already cheap and small, you can't reduce its size like SNES or NES did before. Because Wii is even smaller than the redesigns of those.
"The size reduction comes at a cost of losing features, I doubt people will like that. "
They did that with the DSi and the Micro I think so I don't see how it would be a problem. See I can also make reference to the past but if looking for the past to understand the future is of course a the most obvious way to predict things you of course have to back it up with logic and the actual context. Nowadays every consoles get a redesign and that's always ends to be a good way to improve sales (well except PSP Go :) ok but PSP had many successful revisions) so I don't see any reason why they wouldn't do it. We can bet if you want but I would prefer arguments as I think I have answered to most (all?) of yours ;p.
True about the DSi losing features, but like I said before, portable redesigns are much different. Nintendo makes a lot of them to every gen portable. HW redesigns on home consoles are a 1 time thing if they even exist. If we go by the current trend, they won't be releasing a HW revision (Neither GC nor N64 got one). And there lies my question, why didn't Nintendo do a redesign of the N64 or the GC? It would at least have brought extra sales according to your reasoning which would have been welcomed by nintendo. I think the Wii doesn't need a redesign at all, people do not buy it for the looks rather than for the buzz it has generated in the society/media. And the future is bleak in regards to its buzz. A redesign will obviously make sales go up, but it would br so frontloaded that it will not matter after a month or 2. Sales will just drop back to the current levels. I don't believe the casual community will re-buy a Wii just because it's slightly smaller and has more rounded edges.
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Pandora's Tower will sell less than 100k lifetime in Japan.
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