I have just a couple things to add:
Point 1. Many more people regularly play solitaire on their home computers than play any and all consoles combined. If Nintendo can hook those people with a cheap, simple console, they've won. End of story.
Point 2. Simple computer games are immensely popular, but they are clearly differentiated from "console games," which are like big-budget movies by comparison. If Nintendo can bridge that gap, they'll do quite well.
Point 3. With the Revmote, Nintendo has something that no one else has. If it catches fire in the mainstream (a possibility. Mainstream journalists will try it out at E3, and if they like it, it will at least get positive press), Nintendo will do extremely well.
Point 4. Points 1, 2 and 3 are bullshit. It's pretty obvious Nintendo is going to make money off the Rev and continue making Mario, Zelda and Metroid games. All that matters is if the damn thing is fun to play with. If it's cheap and fun, then people will buy it and like it. Despite what many of you may believe, life is not one giant compeition. I don't give a flying fuck who is No. 1. I just like to play games, and I like to spend as little as possible doing it.