i told my mom once about Wii randomly and she was like "are you going to buy it" with this tone in her voice as if she were worried. i told her "of course i am" and she was like "why are you going to throw away all that money" and i told her how much it would be, and told her how much the 360 was and ps3 will be and her mind was blown. she couldnt understand why it would be cheaper then the other two because she thought the technology of the controller was something so new that it HAD to be expensive.
she isnt a gamer, not at all, but she loves my brain age game and sometimes borrows my ds to play a quick sadoku puzzle. she knows nothing about gigs and HD or any of that, but the simple idea of 3d motion sensing in a video game, after she's seen me play NES, SNES, n64, and GCN; she thinks its such a step into the future that she assumed such a machine would be too expensive. So all your thoughts are correct, to joe public the price point will be a steal compared to the other two systems out there that don't even offer what nintendo is.
that and consumers are dumb. someone else (not you ceric) brought this up in another thread, that countless parents went to retailers asking for the PS9 because they saw the ad's for it, and new their kids wanted a "playstationg something or other" and thought that was the new thing. a few ads like that for Wii would make the Wii stand out in parents minds who know nothing about video games and want to buy the new "cool" thing for their kids.
the ads could have Wiimotes doing all sorts of crazy futuristic things and have some cliche slogan like "the future starts here" and show the Wiimote standing upright against a black screen, then morphing into the Wii logo. that all it would take to sell the average consumer on something and make them think its lightyears ahead of its time