I'm glad that Nintendo's concept is doing so well recruiting new gamers, retaining burned out gamers and growing the whole gaming community because I believe this disruption was essential to the health of the industry.
If HD (high tech, inaccessible and expensive) gaming on the Xbox 360 and the PS3 became the only option, gaming would have continued a slow decline which was already beginning. The recreation gamers would have been driven to flash games and cell phones. A Wii gamer may eventually decide to add or change to a HD console but once they've turned away from consoles completely, I think very few would return.
I'll get flamed for this but I honestly believe that Nintendo, in the long run, saved the industry that many accuse it of trying to destroy.
Plus it really steams the arrogant among "hardcore" gamers and I hate arrogant people.