So my point is the 32x and segacd didn't really ruin sega. Sega had already lost at that point.

I'm understanding that if the wii was updated, it would have to be through usb, and there is no known way to get around the bandwith limitations right now.

Sega's sales did implode after the 32X. Before 32X, they could hold their own against the Super Nintendo. Ever since the Super Nintendo launched, it was at some points being outsold by the MegaDrive, and at some points outselling it Xbox 360 was always outsold by the Wii, not outselling it a single day except for the Halo 3 launch.

   After 32X and DKC the MegaDrive was always outsold by the Super Nintendo. And the Super Nintendo sold well even in the early PS1 days.

Also, even if Sega would have lost to the Super Nintendo, the damage that the 32X did was consoumer confidence. Had the Megadrive lost and the 32X was never launched, Sega would have been in a much better position even if the Super Nintendo outsold them.

The USBs could just attach to a "hard drive" of sorts................make games load faster or something.

things like a wifi n or slots maybe by usb.
but graphics will stay as it's and nintendo have been releasing accesories for a while. like the balance board and the wii motion plus.

Sega made massive mistakes with the Sega-CD, Sega 32X and the Saturn that really destroyed their brand ... They were all released with limited support which dried up (very) quickly, and the Saturn had the unique problem of launching at an insanely high price.

Exactly, even if Sega would have been out-competed by Nintendo, they still would have done well if they didn't make so many stupid moves.

Saturn had so much more problems than just it's price, like having 0 main Sonic games while the Megadrive had 4.

No but more graphics doesn't mean more fun, so :|