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Exactly- the XBox is failing worse than the Gamecube ever was, and MS is losing money while Nintendo is making a lot of it. People only attack Nintendo because it catches your attention. Except it's not arguable the XBox is in 3rd place- I believe the Gamecube is some 2-3 million units ahead worldwide.
Though doom predictions of such a respectable company as nintendo do generate attention, again, i feel that Xbox's image of success is what keeps the "Xbox is doomed/last/a failure" at bay despite all the reasons that Ian had posted.
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Image is nothing without the sales to back it up- the PS2 has as good an image as the XBox, except the key difference is that it sells a LOT better. It doesn't matter if people think it's the number 2 system- all that matters is it's not.
i think it'll matter next round though, when MS can use this image as brand name power for securing consumer confidence.