first, the "disgruntled wii and ds owners" is pure speculation and opinion on your part. 2nd, they were losing grip b4 gamecube came out...it was a slip during the n64 days. and both were graphically more sophisticated than their counterparts at the time. i blame that mostly on the advent of the disc for gaming vs the cartridge and ninty sticking with the carts and then their own propriatary disc. when everyone was pitching a tent in their pants for the "glory of disc gaming" hooray for freaking loading times!
thirdly, you obviously wrote this before reading iwata's shareholder briefing. Arrogant god attitude? Selfish rockstars? everything he said was to the contrary. id suggest you take a few minutes and give it a good read. might want to change some lines in this post afterwards.
not saying you don't have a right to your opinion, but I'm going to say that your opinion doesn't hold much water.