I did not even begin to suggest that it is. I said that it is one consideration. And I said that it is an important consideration. It is. And not solely for its effect on gameplay either. Visual effects are an important part of the experience, just as they are in Forest Gump, The Matrix, or Lord of the Rings. People who suggest otherwise are just being pretentious.
Again: original Gameboy - one of the best selling system of all time - 4 shades of gray. If you're going to invest your money based on graphical capability alone, you'd be better off just buying a stack of lottery tickets instead.
I don't think anyone here is saying that graphics
aren't important. It's just that, based on past performance, it really only takes two things to move a console: game selection and price. Of course, you're right: no one wants to buy a system whose graphics look like first generation PS garbage. But the Wii again is not trying to up the ante. Nintendo looked at the Gamecube and said "ehh, good enough for what we're trying to accomplish" and for all intents and purposes, it worked out. And when people want those eye-popping graphics? They're going to head right to the Xbox 360.
As for game selection: I'm sure some people love Ratchet & Clank, but I have yet to meet anyone who bought a PS3 just to play that game. Gamers, on the other hand, do want to play Halo 3 or Super Mario Galaxy (now, mind you, not six months from now... maybe). Sony just doesn't have those must-have exclusives. And their one "Ace"? They botched their former limited exclusive! The Xbox 360 is also getting GTA IV at the same time (not a year later). And by shoehorning a Bluray player into their box, that people didn't ask for mind you (we all learned that the PS2s made horrible DVD players), they turned an almost guaranteed success into a third-place, also ran overpriced piece of "do-it-all-gizmo-that-also-plays-games". Sony should have learned from the PSP (I didn't see UMDs fly off the shelves) - but they didn't.
I'm sorry, but I'm predicting that Sony's finishing this console generation in third place. They just completely forgot about the everyday people that helped turn Sony into a video game powerhouse and instead are using their beloved brand as a weapon in the format war, making the consumer the casualty.
By the way, I entered this current console generation with a full desire to purchase a PS3. But that $500 ~ $600 was way to scary to comprehend. These were the same people that cut off Sega's sac in front of a packed audience by pricing their system lower than the Saturn. Funny what happens when success goes to their head...