If there is one thing MS lacks it is creativity. Your reasoning seems totally right to me and to many others for sure, problem is MS out-Appled Apple, Out-WPd WordPerfect and Out-Netscaped Netscape, so they think they have a formula there.  Of course they failed with many other tries to copy other market leaders (google, AOL, Yahoo, iPod) but they seem to think it is a question of perseverance, as it worked for Windows or Windows CE for instance. 

Prediction: MS will last for many decades, (with the cash in hand they could lose one billion a year for the next 40 years or so) but still it will never succeed with something trully innovative of their own.  It's just in their DNA. Since Bill gates steped down from the CEO position, they even lost what they were really good at, IMO that was marketing strategy. 

Microsoft is trying to copy Nintendo and Sony. And it's more Sony than Nintendo, it's just his wording that makes it sound like he is copying Nintendo. I will say this though it was the success of the Wii that made them want to do this. Think the 360 has been out for a full year before both of them but all of sudden he wants to put in motion controls after the Wii starts catching up to them in sales. Sony did the eyetoy (I don't know if it was a suceess or not) with the PS2, Microsoft is trying to take to ideas from their rivals and copy them. Didn't some folks at MS talk about how dumb the Wiimote was anyway? This is dumb, most MS fans don't like motion controls so why would they adopt that. The main selling game on the Wii is Wii Sports and look how simple it looks, casual gamers aren't going to go for this just to play FPS on the 360. You have a cheaper system with cheaper games and a company that has built their system around this idea. MS should focus on with they do best ONLINE because nobody can touch them when it comes to that. MS is getting scared because I bet they thought the Wii was a fad and would stop selling but in a few months it will be past them. MS is trying to think of a way to make more money and not lose their market share.

for me the classic controller is the most suitable for me.

imagine after a tired day with work or studies, u get home and sit in front of ur tv, ur console, feel like getting some entertaintment after being so bored at office or school.

u still wanna stand up while doing alot of swinging, bashing, jumping n watsoeva?

gimme a break

This will most likely end up as a wii-sports clone with some guitar hero esc peripheral.

Well that does it, the Wii is finished, lol.