You make some good points PugGTI but there are few things I would like to add on and clarify on others.
A) I think Connectivity has been getting a bad rap. Not saying the arguments against it are not legitiment reasons but the fact there hasn't been much incentive to use a $100+/- controller (GBAsp). Now FF:CC and TLoZ:FSA do make excellent use of it, but two games (no matter how fantastic, I have both
) isn't going to be enough to sway popular opinion. IMO, I think there is a future for connectivity just not by itself. I don't want to sound like another 'Nintendo needs online' guy but I can see many gaming possibilities with the combination of connectivity and online gaming together!
B) Here is where you made your mistake. First, The only dev out of those 3 that you mentioned that is gone is Rare as they were bought out by Microsoft. Silicon Knights and Factor 5 can and probubly will make games for Nintendo. You mistook the announcement when you heard SK and F5 are leaving. I don't know what Sk is up to but I assume they are doing the same thing that F5 is doing and that is working on Next gen software since there isn't much time left in this gen to do much of anything that would stand out in the already big crowd.
Also, out of those 3 (heck any GC dev) Factor 5 has pushed the GC WAY BEYOND it's spec's and even the all mighty xbox's which has not been able to beat Rogue squadron 3's specs, or more exactly, no other developer has been able to match it thus far, so when it comes to talent I got to give a tip of my hat to them and not Retro but that doesn't mean Retro isn't good in there own right, I mean they did take a 2-d adventure game and bring it into 3-d without losing that games classic adventure 'feel' (I'am ofcourse referring to Metroid Prime) afterall.
Throwing cash around doesn't do anything (just ask Microsoft about there purchase of rare). But your right, Nintendo should have a little more variety of it's OWN franchises and I think they are solving that. Look at whats coming from them, we got Metroid's (action/adventure), Zelda's(adventure), Geist (fps), Marios(platformers?, sports), Pikmin(strategy). I think Nintendo is covering a lot of bases with just those alone. As for different franchises Nintendo is bringing out donkey konga, mario party 6 that supposidly(sp?) doesn't use controllers and uses an 'eye toy' prepheral for the GC (I think so anyway) so it doesn't matter weather you or me or anyone else likes it or not, the fact is, it's a new way of gaming.
C) I agree with you here too, I think Nintendo should give us those SD card adapters. That is ofcourse dependant on the cost. Last I checked, SD cards were at about 1 gig so these could very well act as HDD's, couple that with some D/L content goodness and online/connectivity gaming and I think were all set here. But ofcourse the big question of all this is cost so we will have to wait and see.
D) I guess this plays with what were both saying about variety. Not only should Nintendo carry a good variety of it's own software but to make contracts with all the 3rd party devs out there and get games for every genre especially RPG's and sports since those two areas have seem to be Nintendo's weakest points (system library wise anyway).
E) Heh, just the other night I did a little cut and pasting in windows paint and put together my dream controller. It goes roughly as follows: (btw, picture a N64 controller without the middle handle and z trigger to get an idea)
-6 Face buttons like the xbox buttons. Not the layout but the type of buttons
-n64/snes style D-pad
-GBAsp screen in middle
-2 analog sticks like PS2
-Wireless
-rumble
-start/select
-GC style L&R shoulder buttons
-Memory card slot for GC and SD card adpaters.
whew, well thats enough out of me
. Personally, I think Nintendo made a huge 180 with the GC compared to the travisty that was the N64. I don't care if anyone disagrees with me or what anyone else thinks, that thing was a huge dissapointment period, especially since guys like me were coming off the SNES, there was a lot to live up to and the n64 did not deliver, luckily, the GC is making amends and I think if Nintendo holds it's course (especially if they do what were all saying here
) and continues to change I think we're in for a real treat next gen.