I kind of agree, Smash_Brother. Nintendo often comes out of E3 smelling like a rose, but this time there isn't even any way for Sony fans to argue against it. I mean, they'll try anyway, but Sony's showing was horrific. They should have just rolled out the Final Fantasy and MGS footage and said, "More details to come!"
However, I don't think Sony's poor showing derailed the Wii naming thing. It helped make Nintendo (and MS) look better, but I think playing the system would have made people shut up about the name anyway. You don't go to E3 thinking, "Oh I can't wait to make fun of this new system's crappy name!" You go thinking, "I can't wait to play this new system's games!" The gaming media came, it saw, it had fun. Even if some of the impressions came back kind of so-so, the buzz on the show floor must have been pretty big considering that the lineups for Nintendo's booth were record-breaking and got longer each day.
Edit: Oops, derailed myself! My point being that once people played the games, any remaining doubts about the name became totally insignificant. Nintendo releasing the name before E3 was very smart in retrospect, because it was old news and had no chance to overshadow the experience.