I agree with the OP. The price point of 360 and PS3 would make the videogame industry stagnant without the Wii/DS.

@scorptile: I agree with you on the part that the console industry would have died without the Wii, and I agree with you that it would've been killed, but I don't think the pc-market would be responsible. Although the pc-market almost killed the console market back in the early-mid eighties, I think handhelds are far more deadly to consoles than pc's.
In theory, a handheld could be plugged in a tv with av-cables(even through wi-fi or bluetooth with better technology) and be played on the big screen. The PSP has proven a handheld can handle console-worthy technology. All you would need is higher resolutions. And the DS prove handhelds could outsell consoles by far. This would by enough to kill the console-industry. But with the Wii's unique experience and high sales, the difference with the handhelds can be kept within perimeters. Without the Wii, the final gap between consoles and handhelds could en up to be over 150 million, but with the wii, I hope to be seeing console sales not more than 25% less than handheld sales, so both markets can live alongside.

Whoa whoa, you guys are jumping the gun a bit.

First off, nice read, and you make a lot of good points albeit a bit wordy =) But I don't know that you can say the console business would of died without the Wii. You might be able to make a case that console's would of died without new innovations, which is almost certainly true. I think it would of been very hard for the generation after this one to continue to sell the same old consoles with a bit of a boost. Innovation was quickly becoming necessary but the Wii was/is not the only thing that could of revitalized the industry.

I for one, welcome our new CG overlords .

sure. Sony or MS could have revived the industry... eventually! It would have happened much later though.

 Or Nintendo, or another company.  My point is that motion controls are not the only way to add something new.  It could of been a lot of other technologies that would of revitalized the industry, but it was the Wii.  My point is its not like the Wii was the one true thing lacking in gaming, it is just one of many possible ways to advance us forward towards deeper and deeper game immersion.

2 months ago. someone would have already response with the "gimmick controls".
It looks like the denial stage is over and now comes the acceptance stage?

 There is truth to what you say, but not everyone is like that.  We have a decent mix of people who enjoy different consoles/genres and who are capable of having a nice rational conversation. 

Sorry, but I still think that the Wii is a downgrade from the great Gamecube. The Wii-mote really puts a limit on how great a game can be, and it shows in alot of the games that are out. In my opinion, the Wii-mote simply is not for normal game; instead it's for mini-games like Wii Sports, for example. Due to it's lack of buttons and no second analog stick, the Wii fails to control games at the same level as the classic controler. Yes, the Wii has some games comming out (Mario Galaxy) with great graphics, however, the most important thing is game play, and thats what the Wii lacks...

 Wow, I feel almost exactly the opposite.  I think the Wiimote paves the way for new exciting gameplay that was never possible before and I think this is exactly why the Wii is a success. As far as a downgrade from the GC, I don't even think thats possible to say honestly.  The fact that it can play all GC games and you can use the GC controllers for new games makes me think that if developers really thought the Wii-Mote was a limitation they would provide alternatives (and in the case of SSBB they did).