Sticking feathers on your arms does not make you a bird. Unlike analog, rumble, and wireless, the Wii Remote's secret weapon is that it's not the secret weapon of the Wii at all. Anybody can make a "magic wand controller" for their console, as many critics of the Wii have happily pointed out, which just shows that they missed the bigger picture. The Wii's power comes from its ability to sell across vast demographics, many of which would never touch a PS3 or 360 because of their image. The PS3 and 360 could have the world's best motion controllers designed for them, far outclassing the Wii Remote in every way, and the only people they would steal from Nintendo would be the gaming die-hard crowd. Which makes up only a fraction of Nintendo's total market.

By now the people that made up their mind on how to buy a console based on traditional gaming or casual/motion sensing games has, a copy-cat remote will not change it; not to mention that there will be almost no games that support it initially and the ones that do will come out close to the time we are expecting the next gen to be announced(if it won't have been already). As for capitalizing on it in the future gens... maybe, Microsoft's strongest selling point is FPSs... which won't be any better with a Wii like remote, Sony's strong point sense PS2 has been with making it a superior movie player than other consoles and competitive w/normal media players in terms w/price. Both companies would have to spin away from drastic investments for this to be anywhere close to effective. I have no doubt we will see motion sensing from both companies next gen but most likely will get forgotten and not even worth recognition.

Everything about the PS3 and 360 controllers were ripped off from Sega and Nintendo now, and no one cares. Why should anyone care now.

The only people who care about this kind of thing are people who care more for companies them themselves. And that's a very small group.

If MS or Sony comes out with something insanely fun, it will sell. No one will care where it came from originally.

Nintendo isn't thriving just because of the Wii Remote, a more important things is public perception. When the public has a bad first impression of a product, they are likely to not look beyond the cover for its good things. For instance, Nintendo was suffering from a bad image the previous generation. Super Mario Sunshine and Wind Waker aren't necessarily bad games, but they gave the public a bad impression about the system. As a result, the GCN sold the worse the previous gen even when they had their own supply of hits.

SkyRender says:

"The Wii's power comes from its ability to sell across vast demographics, many of which would never touch a PS3 or 360 because of their image."

Exactly. That is what Sony & MS need to copy if they want to imitate the Wii. The motion controls are a smoke screen designed to confuse them while Nintendo expands the market.

Assuming these rumors are true, and Xmotes and PSmotes pop out, they will still fail to understand Nintendo's value model and won't get new customers. Even worse, they'll lose their current fanbase as they think the Dualshock controllers are the best.

This is further validates Wii as competition, a trend setter and as a software development platform.

MS/Sony seem to want to dilute and unfocus their market by going "metoo" which tells developers that motion controls are apparently what everybody wants.

They could win but then again Nintendo still has Wii Sports. Wii Sports is the secret weapon.

Shovelware have the gameplay that you said

Great Wii games actually use the controller to delives gameplay that no other console can deliver (MP3, MoH:H2, Z&W, RE4 Wii Ed, Pro Evo Soccer 2008, Twilight Princess, NMH, Smooth Moves, Trauma Center 1/ 2, SMG...)

Nintendo knows that the controller can be copied, they aren't affraid of that. Actually, they were expecting it.