"I believe that Nintendo should cater to all gamers, whether they be hardcore, casual, or non-gamers. They should never alienate someone who has the potential to be a gamer. "
Agreed, but the question isn't whether they should or shouldn't target all gamers, it's how.
Nintendo should realize that all games aren't for everyone. Some people like very deep complicated games (Ian for one), while others just like to pick up and play for a bit.
Nintendo is always trying to realize the center, but tend to dissapoint those that are on the extreme polars.
They need to change their philosophy. Instead of making games that try to appeal to everyone, make many games that appeal to many specific groups. That's one of the reason PS2 is dominating. It has variety, and people love variety.
It would take alot of resources, but it would ultimately be for the better.
A prime example of this is the GBA. It has very simple games like Chu-Chu Rocket, yet very deep games like Golden-Sun and Fire Emblem. If Nintendo could somehow garner support to make a wide variety of games for the REV, while leading the way through example, it could help their image and more importantly their popularity.