Yeah one reason NIntendo put in Wi-Fi is to keep things simple for consumers.
I did a similar analysis of the Wii. Think of it like you're upgrading your pc.
I don't how many of you have pcgamed, but upgrading is a way of life. And upgrading your cpu from 2 ghz to 3ghz is something alot of folks do. That's a 50% speed increase. Same with the gpu on a pc. Upgrading your gpu so it's 50% is a major upgrade. And last, but not least doubling your memory is also major. And, in essence, that's what we are seeing here with the Wii.
So borrowing heavily from the OP (I actually posted this or a similar write-up a day or two ago on another forum, but not here) we present the new generation. The ability to upgrade ala carte. (OK not really. All upgrades are mandatory, but I think the analog to upgrading or buying a built to order pc are appropriate here.)
Would you pay $79.99 for a new cpu, gpu and memory add-on that gave your 'Cube such speed increases as %05 or more? .... while knowing that future games will take full advantage of said add-on? And that these games would be available immediately? I would.
NOw let's take the controller. Would you pay $59.99 for a controller add-on knowing that Nintendo and 3rd parties would release countless game titles for it over the years? FRom what I've read so far I'd have to say that I would.
HOw about WiiSports? Ok you might not be interested in the game. But can we agree that it's worth some value? I think the game too will probably have more depth than folks are expecting. The analog 3d control certainly means more depth than just pressing a button or two. And certainly the potential of this is in competing against others. Anyway let's play it safe and price it at $29.99.
OK you're probably see where I'm going with this (of course you you already know as it's the same thing the OP has done
,) but anyway I'm not stopping there.
OK NIntendo is whipping their online service into shape. For that you're going to need a connection to the internet. Nintendo is offering a Wi-Fi upgrade for your GameCube. IT's $29.99. Are you along for the ride? Count me in there too.
Next let's say Nintendo offers a a smaller case with stand for your Gamecube. It's the size of 3 DVD cases. Tiny. And along with that they give you a new Slot Drive disc player that will accept both GAmecube discs and larger proprietary DVD discs for newer games. Let's not forget some kewl neon lights? What's this worth to you? Would you bite for $10? I think I would. Of course you pretty much have too if you're to play some of the new games.
Ok on to WiiConnect24. Here's our instant-on sleep mode. OUr power saving circuitry. The ability to download while you sleep and receive messages from friends and NIntendo and receive weather updates and who knows what else. What would you pay for this if you could upgrade your 'Cube? $10?
Next how about Free online play along with access to the virtual console and the Wii channels? Would cough up another one time fee of $10 to access all this? If you're in for Wi-Fi then you're here I suppose. $10 it is.
Next let's talk about the internal 512mb flash memory and sd card/usb support. I'm pricing this at $10. A 512mb flash drive in the store is a good $10 or $20 at least. SD card support will let you the photo browser and store VC games and updates galore. Hopefully Nintendo does something with the USB ports. You don't have to get this upgrade, but then you'd be using GC memory cards which have little storage for a premium price.
How about upgradeable O/S that the Wii has along the sensor bar technology? Surely that's worth $10.
Another reason the Wii is priced a bit higher than some might think is that it's circuitry has been shrunk down to fit in such a small size. Over it's lifetime of heavy playing you're likely to realize some power savings that will certainly add up. Who knows what this be? I know that Nintendo said something like 20 or 30% energy savings for alot more system processing power. Of course the always on feature might diminish this a bit, but supposedly it uses very little power while asleep equivalent to a tiny light bulb.
Anyway I'm conveniently getting $250 here.
I don't think I priced these upgrades outrageously tho.
I think the reason folks think the Wii is a bit over-priced are two fold.
First, when Nintendo said $250 at the most the internet started hoping for $200. (REally if folks thought $200 was aobut right then throwing in WiiSports and calling it $250 isn't that far off.)
Second, I think the gaming public is just used to getting the same thing only faster. And thus their immediate reaction is wtf? I think you really need to see the wiimote as Nintendo's hi-def even if you don't think highly of it right now. That's where alot of Wii development money went and where alot of Wii manufacturing money is going to. YOu also need to see that the cost of miniuaturization and more power/watt is hi-tech and is more expensive than not making the same console larger and more power consuming.
OH there's another reason too. And that's that Nintendo isn't selling everything at a loss. I think they need to do that because gaming is their only business. They can't afford to lose $4 billion or they might get wiped out. So maybe you pay more upfront relative to cost, but you can see why the competition video games are $10 more. OR at least one reason they are. You can see why MS Wi-FI adapters are $100 and their Wavebird-equivalent controllers are $50. NOt that Nintendo won't do their share of high priced accessories, but I really think $60 for the wiimote and nunchuk is because there's alot of hi-tech stuff in those things.
OK got a book going. over and out.
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D and a $15 off coupon. I have to say that was a great deal. A total steal. 
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