@ Ian Sane
"Nintendo's games are usually pretty bug free. That's probably from good software testing. I do some software testing as part of my job and a good testing approach is to try to think outside of the box and think of how a user can break something by doing something unconventional. Nintendo's testers must be very good at thinking like that for Nintendo to have the quality assurance they have. The same methodology should apply to designing the hardware. In this case the developers are the users and they need to think of how a dev could hit a roadblock. Not think of how this works for Nintendo's games but how it could work for someone else's. In what situation would this hardware not cut it? I think Nintendo thinks too much in the optimistic direction where they think of all the awesome things they could do with the hardware. No, think of all the awesome things one couldn't do with the hardware. Then they're not designing a console just for Nintendo, they're designing a console for all developers who may value different things then Nintendo."
I agree with you in the fact that if Nintendo could get over their self-centeredness then they could very well have the potential to have one of the most invigorating consoles ever produced at this point that far exceeds any kind of creativity that Sony or Microsoft have up their sleeve. This is why I am so eager to see the Wii 2 because I would to see the return of the glory days when Nintendo ruled the land scape and every third party game had a place on their console. Of course this could all be hog wash, but I would love to see the market swing in Nintendo's favor even more for the next generation because they deserve it.
Honestly, I would not be surprised if some third parties like Square, Capcom, Konami and Team Ninja have prototype development kits for the Wii 2 and western developers such as Activision and EA (no Epic

: ) have one as well, but Nintendo is more or less in the stage of hearing their feedback before a final design has been authorized. I imagine that this prototype must run basic Wii games in HD with advanced motion plus controls.
Ultimatly Nintendo is going to go all out with the Wii 2, but at the same time try and remain within the parameters set by the Wii, which is to not directly compete with the PS360. Nintendo will still pretend that the Wii 2 is weaker even though many will claim that the system is more powerful than the PS3.
As for launch titles, a timed exclusive Activision published/Bungie developed game (Marathon?) would go a long way in attracting PS360 owners to the new system. However, would Nintendo be willing to pay for timed exclusives considering that they have all the money in the world?
On a recent show, RFN alluded to how many gamers abandoned Nintendo for the HD consoles because Nintendo seems to be too "kiddy." Well, it seems to me that with the addition of Move and Kinect along with such games as Little Big Planet, Sony and Microsoft are casualizing to capture some of Nintendo's loyal fan base. So, the Wii 2 would present a good opprotunity for Nintendo to harden their core audience and capture some its competitor's fans and keep them in focus.
Heck, if Nintendo were to release an HD console and third party support were to become successful, it would not surprise me that people would trade in their PS360s just to preorder a Wii 2. This is where the third party dvelopers will become successful: Fanbase shift from Sony and Microsoft to Nintendo.