I agree completely. Like I said to your post in the Id thread, diversification is really the way to go. Big publishers need to spread their projects out and they need to make some spending cuts. Small publishers need to leave HD development to the big guys who can afford to bet big while they work on Wii games, handheld games, and downloadable games.
The big HD project versus four Wii projects comparison is a little extreme. A more representative plan would be switching from two HD projects to one HD project, one Wii project, a few downloadable and handheld projects and some staff cuts.
I don't think that the Wii should monopolize development budgets, but I do think that HD has been over-represented in budgets, Wii has been under-represented, and the budgets themselves have been larger than they should be.
Are you saying here at the end that Wii budgets need to be lower?