I suppose it's just not for everyone. I love the Virtual Boy and I think its untimely death speaks to a character flaw in society, rather than Nintendo. I mean, there were some serious issues with it. Primarily, it was too big/heavy to play comfortably for an extended period of time. But Nintendo is universally derided for Virtual Boy when they deserve our respect, even if the experiment was ultimately a failure. But ultimately, it's hard to convince people to pay for the unfamiliar. It's why this Halloween we'll be treated to Saw 12 and next summer we'll get another Transformers, and this summer we'll get a ---smurfing--- reboot of Spider-man, which was only rebooted to critical acclaim and enormous commercial success like a decade ago. Everyone just wants the same thing over and over and over again.
For all their flaws (lately there seem to be more and more), Nintendo is a company that doesn't rest on its laurels. Compare them to Sony and Microsoft. What have those companies ever done but provide incrementally better versions of what had already been done before? Between the two of them, about the only innovation we have that wasn't just an incremental improvement on something already done is the Eye Toy/Kinect (products that are at least as flawed as the Virtual Boy). The Virtual Boy was a legitimately 3D system, and it had a highly innovative gamepad attached to it that gets almost no attention because it's upstaged by its display. But more importantly, this was something unlike anything that had ever been done before. How many times has Nintendo done this? The gamepad. The analog stick. Rumbling controllers. Shoulder buttons. Motion controls. Touch controls (DS). Camera controls. Power pad. And that's just hardware. Nintendo gave us the platformer, the side scrolling platformer, the 3D platformer. And other quirky gems like Animal Crossing, Pokemon, Pikmin, F-Zero, Star Fox, etc., etc., etc.
The Virtual Boy is a videogame experience unlike any you had ever had before. And moreover, it's a pretty cool experience. But whether you like it or not, you ought at least appreciate the fact that it exists. It's pretty amazing that a corporation the size of Nintendo signed off on such a risky project.