As long as Nintendo is profitable for this generation, I really don't see the point of mulling over the details. Yeah, I'm surprised that seasoned veteran Nintendo has shook of MS, but at the same time with the kind of money the MS has and can throw at this endeavour, it's pretty damn susrpising that they have yet to even make at dent into the PS2.
The fanboys need to face it--Sony has pretty much locked things down. I would be worried if Nintendo was in finacial trouble, but how many times do we have to remind people that Nintendo is NOT Sega. Outside of that, I don't see how sales numbers can affect one's enjoyment of their console. You some issues to work out if this is how you think.
Unfortunately, I think this is a disease that is being picked up by the industry itself. This year's E3 was glaring example of this. We got a lot safe bet sequels and concepts. Games that license images from movies and other media are becoming more prevasive than they ever were during the 8 and 16 bit generations. Overall there is a lot more concentration on where a company is within the market, as opposed to what they a trying to bring to the table. The insane growth this industry has experinced can be reveresed quickly when quality plays second fiddle to everything else. Even Nintendo is not immune to this virus and while I generally like what they have been trying to accomplish of late, there are certain ideas I want them to avoid. The Four Swords thing sounds cool, but the Zelda name has generally been built on mainly the regular adventures and not spin offs. I hope this is not a sign of things to come.