I'm not such a Nintendo games fan really.

Yes.

It wouldn't be financially viable for me to buy a PSP2 for Mario & Luigi, Pokemon, Kirby and such.

It also wouldn't be financially viable for me to buy a PS4 and Xbox 720 for Metroid, Zelda, and whatever software they chose to put on them.

So ignoring all their past innovations like analogue sticks, rumble, touch screens and motion control and the fact that there wouldn't be a gaming industry right now if Nintendo had always been a software only company?

Yeah, that wouldn't be so bad. It'd be nice to play the next Zelda in HD and the next Smash Bros. with a decent online system :P

depends who you are. if ninty went sega, then they would probably be multiplat on as many things as possible. for some thats cool. for others not so much. it would make no difference to me. but im sure if they went software only several smaller studios would die fast.

I enjoy what Nintendo has brought to the table when it comes to hardware, especially on how they develop a console around the controller. Hardware still has a lot of growing to do, especially on how we control our games (Motion Control has shown this... whether you like it or not, it's receiving a lot of attention from all parties). Constant competition and innovation has allowed us to see things like the analogue stick, shoulder pads, and most recently motion control.

So no, I encourage them to continue making hardware and software... and to continue to innovate on both.

There's definitely advantages to having all the games in one place, or in fewer places, but part of Nintendo's success and what makes their games successful is that they control the software and hardware.  I doubt Sony and Microsoft could ever conceive of hardware like Nintendo's, and the games just wouldn't be what they are without it.

I think it would be bad for the industry, if not now then some time down the line, if Nintendo no longer made consoles. It's funny, but for all the people who put them down, they control the industry now, and always have. Back in the NES and SNES/ Genesis and Saturn days, it was all about graphics and power (at the time, I know they look woeful now). Now, Nintendo's moved to innovating controls, and what to Microsoft and Sony bring? New types of controls. And you can bet PSP2 will have a touch screen. In fact, I don't remember many things having touch before the DS, and now it's absolutely everywhere.

Their influence is huge and that kind of creative force would be sorely missed.

If the industry continues on the way it is now, and Nintendo were to leave, it would surely die. No doubt about it. Not immediately of course, but after probably 2 gens it would be all over.....

And then they would come back again lol

Disaster, where would gaming be without the controllers, 3D, motion etc?  Everyone can make fun of it bu the truth is, Nintendo has had more influence on gaming han anyone and it is not just software.  Wether you like Sega, Sony Micro or whatever, they all feed of Nintendo.

Monty Python said it better ...

All right... all right... but apart from better sanitation and medicine and education and irrigation and public health and roads and a freshwater system and baths and public order... what have the Romans done for us?

For Romans, read Nintendo.