I don't think Capcom's "retraction" was all that forceful. I am worried for the Cube, I do think it need adult games, and securing the Resident Evil series kept a lot of their adult gamers happy. That's why I bought my cube, and Capcom said at the time they wanted all the games in the series on the one platform.
I couldn't care less about PN03, for all the hype, that game always looked pretty shallow. I do hope that Killer 7 and Dead Phoenix will turn out well however.
If Nintendo went to some effort to secure the Resident Evil series, thus wooing over older gamers like myself, first time Nintendo buyers, just to let it drop and waste all the work they did.....I don't see how that's a positive thing. The old guard of Nintendo fans just don't seem to accept that there is now a growing percentage of Nintendo gamers who's primary reason for buying Nintendo are their adult games that they have produced or secured; Resident Evil, Eternal Darkness, Metroid, and the next Metal Gear Solid. It's kind of annoying to see Nintendo go to so much trouble to bring the sector of gamers over to the Cube, only to have people say "Who cares, we know that Nintendo owners only enjoy Nintendo first party." Nope, I bought my Cube to play Resident Evil, and so did a lot of other people I know from the Resident Evil community. That franchise is important to us.