I think we fundamentally disagree on the time scale of the Japanese decline. The demise of Japanese dominance was a long and painful process as far as i'm concerned - and it's been horrible to watch.
We're at the point where a large slew of Japanese dev houses just look a bit lost and directionless (as far as console gaming is concerned). I'm not sure how the Wii U is going to restore that over night.
The Wii -needs- both West and East though - Nintendo need to sway people to give more than token "port" efforts. They need more.
I think we do. Cuz I remember all the way up until the PS3 launch, people were still spouting how MS NEEDED Japanese talent to keep their console afloat, and you wouldn't say that if the opinion of Japanese games wasn't mostly positive. And then the PS3 hit, and within a matter of a year, Japan was somehow "behind the times".
I've always placed blame on Sony for this... coupling the fact that:
1) sales of their console were so low that it FORCED Japan (which bet on a PS2 repeat and sank development resources into its successor) into multi-platform development to meet sales targets, something that their history doesn't demonstrate as being a terribly commonplace thing (to put it lightly)
2) Sony had taken a decidedly Western shift in its positioning and 1st-party lineup so they could lock horns with Microsoft, which forced many developers to follow suit to ensure that their multi-platform games appealed to BOTH platform's audiences
... THIS is what ruined Japan. And this is a spot that Nintendo can easily refill now that Sony has clearly abandoned it, as evidenced by the Vita. Being unchained from multi-plat, and therefore not having to make games to cater to a specific demographic, could mean a refocus on game design like we have been enjoying on handhelds.
This is the first and ONLY generation where the console exclusive became a non-factor, and it's entirely because the user base on ALL consoles didn't really allow for that except the Wii, which, as I said, was a non-factor as 3rd-parties had already bankrolled on the assumption of PlayStation Domination. Take those market conditions out of the equation, and you don't get written-in-stone exclusives. If you have a definitive market leader that you can throw your weight around on, you get DE-FACTO exclusives.... alternatively they support X720, PS3, and Wii U and have all the cake _and_ eat it.
I don't see any 3rd parties going exclusive to any one. Those days are largely over without a very large cash fez