I think this specific paragraph deserves emphasis, because it's the meat of his argument and several people here may have missed it:
I'll repeat this again: I am not saying that the more hardcore games are going to die out. Smart developers and publishers will realize that they can make a mint off the hardcore, especially if more developers move towards the quick, jump in-jump out type of experience that many Wii and DS games offer. But they will be in the minority. Valve, Epic and others won't turn to making mini-game compilations, but I can definitely see companies like EA and Ubisoft realizing that they don't need huge development teams and hundreds of people working on a game to make a ton of cash in the land of mini-game moneymakers. It's like suddenly discovering that business plan behind McDonald's is applicable to video games.
He's not saying that the Wii's dominance will put an end to hardcore gaming as we know it, he's saying it simply may dilute the pool. If there were 100 hardcore games last generation that were rated 7.5 or above, there will be 80 this generation, and they may have smaller funds to pull development from. That's what he's afraid of, and his fears aren't entirely unjustified. That just may happen.
However, it's inredibly selfish. Even he admits that this is only a dilution, not an elimation; basically he'd rather keep all of his precious games than give up 15-20 percent of them and bring in tens of millions of new users.
Here is my stand, and please, tell me if you're with me -- I will gladly give up 15 percent of my "hardcore" games if it means the videogame market I love is no longer seen as a puerile preoccupation for dorky, antisocial boys. If this brings legitimate artists into the foray that write better dialogue than Gears of War has (which was alluded to in this post; it's good for a video game, but trite and preposterous for any fully established art form such as novels or movies), I'm happy.
I would rather be a niche in a giant market than an important player in a niche market.