It could be argued that the Wii basically saved Nintendo's place in the console business. Had the company instead gone down the expected path of more power, better graphics and launched a GameCube 2, it's conceivable that support would have dwindled to the point that Nintendo would have had to seriously consider cutting the system off like Sega did with the Dreamcast. The company would have then gone on to focus on its thriving handheld business, while expanding its IP onto other consoles like Xbox 360 and PS3. Could you imagine Mario appearing on an Xbox 360? Crazy indeed, but this editor never thought he'd see Sonic on a Nintendo platform either.
Ultimately, looking back at Nintendo's decision to launch the “Revolution,” we see that the company did what was necessary to ensure its continued success in the console space. Sure, it felt like like a startlingly bold move at the time, but it now seems like it was the only intelligent move Nintendo could make.