You also have to remember the context of when I said that which was back during E3 where everyone was severely disappointed, including you btw. So you can't really judge me on something I said back then because as I recall you were disappointed as well and probably felt similar.
Yes, except
I'm being consistent: I don't feel that the Wii becoming the success it is was in Nintendo's best creative interests, as they lost that fire that drove them to create such interesting projects in the N64/GameCube eras. I'm not the one saying that Nintendo needs to be so dominant that it knocks out their competition as a presence in the marketplace. I think part of what made DS such an interesting experiment is that Nintendo was genuinely threatened by Sony entering the handheld space with the PSP. They
couldn't just rest on their laurels, and they didn't until the later years of the handheld when their dominance was assured.
But remember the NES was Nintendo's golden age when most of the franchises we know and love today were first introduced, and the NES had like 90% market share. So you can't say the lack of competition made things stagnant. What it did do however, was give Nintendo nearly all (if not all) the 3rd party support.
And look
how well having all that 3rd party support did them in the later years, when Nintendo's iron-fisted monopolistic treatment of 3rd parties sent them all to Sony (and to some extent Sega). Nintendo's their own worst enemy. And incidentally, they
couldn't rely on the same 3-4 franchises back then like they could now, as they didn't
have franchises. Yeah, I grew up on an NES and I have some heavily rose-tinted nostalgia for those days, but looking back at what the market
was back then I'll take the diversity of our competitive modern era any day.