It seems to me what is happening to Nintendo these days is the same thing that happened to a Croatian Inventor named Nikola Tesla.
Brief history lesson. Nikola Tesla was the brillaint electrical genius that discovered the rotating magnetic field and Alternating current, among other things like the fluorescent bulb and microwave ovens. I think the first was something about Turbines, but AC is a fantastic breakthrough that allows your house to be powered on individual parallel circuits instead of one big series circuit. I.E. Circuit breakers and stuff. Of Course, this made Direct Current proponent Thomas Edison very furious. So he launched a propaganda war against Nikola Tesla and AC. He ridiculed the man, called his inventions deadly, even electrocuting small animals with AC to show that "fact." He was humiliated, and his character was assassinated. Usually, when you see a villainous mad scientist in a movie (Edison invented those, go figure) he was based in Nikola Tesla. Thing is, Edison passed off AC as the work of his underlings and actively tried to delete Tesla from history and steal his ideas. Funny little anecdote: The U.S. wanted Edison to find a way to detect subs during World War I. Tesla suggested "energy waves", and Edison said that idea was ludicrous, so the world would have to wait some 20 odd years to get radar, based on the same principles.
Long Story short. Tesla was ridiculed, humiliated, scorned, and had his ideas stolen (check out his invention of the radio). I see the same thing happening to Nintendo.
Everybody and their brother's website is flinging mud in Nintendo's direction based on this whole online vs. connectivity thing. It is not considered innovation and Nintendo is a company of fools because they do not actively waste money seeking the trend du jour, vis a vis, online plans (God I hate those buzz words.) But lo and behold, on Sony's PSP feature list, what do I see but connectivity to the PS3. I wonder if it will be cool now that Sony wants to do it. Eyetoy? Gameboy Camera, years before. HardDrive? Actually, heh Sega beat MS to that. The Saturn had battery backed memory for save games, and you could D/L new content via the Dreamcasts modem. Conveniently forgotten. Hopefully, Nintendo's connectivity won't suffer a similar fate. Eventually, this online stuff will be seen for what it is. Really expensive, fancy multiplayer/downloading. Big deal.
Of Course, that's just my 2 cents.