In regards to Nintendo's image, really Nintendo has changed a TON since the NES days. Granted back in the SNES and NES days they were not considered a little kids system but Nintendo still had a very strict policy in regards to what games got on their systems when it came to content (MK for SNES anyone?). N64 started to lighten up a bit on the policy, but still it was relatively strict. GameCube wasn't a big step when it came to image change (though surprisingly even when Nintendo opened up more to mature titles, including some of their own, the GC is considered the kid centered system).
The Wii not only has a pretty liberal policy in regards to violent games, but NIntendo has gotten Rockstar on board with Manhunt, that says alot to me. Even Reggie has helped to shift the direction of Nintendo from "kid centered" in direction to a more mature approach to marketing and expanding their userbase. Could they do more? Most likely, but I also don't want to see Nintendo dump who they are as a company either to appease the "Sex,drugs, violence" crowd either. It is a balancing act, and so far I think Nintendo is doing a great job of changing its image, without completely changing their values and philosophies.
Once again I want to reiterate that I think people are overreacting about EA games, what they said is true if looking in the right light. Games with the style of MySims tend to sell better and to a more diverse audience on Nintendo systems, that is the truth and I think it is denial to pretend like that isn't true. Not to say it is the only TYPE of game the market will accept, but it provides the opportunity for reaching the most people on the Wii.
P.S. Why in the heck is the word "Kid die?" a forbidden word?