They'll all be bought up by Gaben at the same time.

Nintendos digital business has seen significant growth over that last couple of years.

well im sure nintendo would have been targetted if their online were more popular, so that would indeed affect them. im talking more about things like the scandals that went down in gaming journalism recently. the fact that small companies are getting eaten up by bigger ones like ea/activision. once awesome companies like capcom are going out of business because of their shady business practices. all that kind of crazy stuff. 

we all know the ET atari 2600 situation that occurred so many years ago. i think we see a similar thing occurring here a lot with companies rushing games out, not completing them, shipping us slideshows (19FPS games) etc.. these aren't nintendo problems. and if the industry crashes around them, i dont see it affecting nintendo themselves all that much. they have everything they need to continue selling products. and, like i said, they dont need to sell that much to survive. i think theyre in a pretty decent spot.

4. They are the only ones who have the ability to milk the same franchises for 25 years, and loyal fans who keep on buying them.

well the reason that works is because they don't flood the market with them. 

As if Nintendo are somehow existing outside of a space where higher fidelity games mean longer development cycles or bigger teams aka higher production costs which can easily make point one and two mute in the next generation.

Also I'd like to see that generation where all of Nintendos potential income came from one system with a 20 million installbase.

*cough* Pokemon *cough*

They're just better at diversifying some of their products.

If they're thinking about going 3rd party that would be good enough. I don't think they have what it takes to be fully digital as in streaming games anywhere you want.

pokemon, admittedly, is your best argument if you plan on making the case that nintendo milks their franchises. i find that one original game (XY) plus a remake (ruby/sapphire) in a single generation isnt exactly the worst example of milking that this industry has seen. i could name five franchises that are more culpable than pokemon in that regard off the top of my head. HOWEVER, last generation with white/black, white2/black2.. THAT was goign completely overboard and reprehensible in my opinion. diamond/pearl/platinum +heart gold/soul silver were perfect for the DS, so i half way agree with you. but i think if they stick to the traditional way of doing it, then that is acceptable.