There are lots of N64 games looked on with longing and reverence: Starfox 64, Mario 64, Mario Kart 64, Goldeneye 64, Legend of Zelda: Ocarina of Time, Legend of Zelda: Majora's Mask, NFL Blitz, Banjo Kazooie, Conker's Bad Fur Day, Pilotwings 64, and for some Diddy Kong Racing, Mario Party, and Perfect Dark.
But despite the potential and the powerful processor, the cartridge limited the kinds of information the game could hold where the CD could hold CD tracks of so much quality for music along with game data, CDs were much cheaper to produce (I doubt Square was thrilled about the prospect of Final Fantasy spanning two or three cartridges), and the PS1's lower horse power meant it was cheaper to produce games.
Nintendo has addressed all of these problems the N64 had with the Wii. Blu-ray is expensive and untested, while DVD's might as well grow on trees. The DVD can hold whatever information a developer wants, and lots of it, while still using the Gamecube's inside-out-and-backwards anti-piracy method, as Nintendo's reasoning for an expensive cartridge on the N64 was that it was much more difficult to pirate. And by underpowering the system, developers don't have to hire an army of content creators they'd need to fire between projects as companies need to for X360 and PS3 titles.
And the new controller is response to how the DS has overtaken the PSP based on a well applied gimmick, like the thumbstick had once been.
How learning from one's mistakes and nearly overcompensating on each point is stupid, I'll never know. They thought the machine's size and approachability had been the problem for the Gamecube, so despite another slew of great games it sold even more poorly than the N64 because no one wanted to go back to Nintendo's system. Now everyone is familiar with the tools, which haven't changed much since the Wii is a supercharged GCN, so third-party developers are much more open to Nintendo, especially with curiousity around this crazy new controller.
And they're trying to expand the market. To put that in perspective, imagine the only films that came out on a large scale were bad slasher remakes, Disney films, and mid-80's action-in-a-jungle flicks. No epic fantasy, no science fiction, no chick-flicks, no comedy, no documentary, no political thrillers, no military struggles, etc., etc. If you didn't play games before, Nintendo is trying to expand the market so that you'd find a game you might like. How creating a gateway for people into games is stupid, I'll never know.
I guess Spud just believes not trying to take over the entire home entertainment market with every more is stupid. But they're a games company, not an entertainment giant like Sony or a megalithic home computing force like Microsoft. It's just not in their interest to take the whole cake when they conduct business with profit on every step.
Who's really more screwed: a person paying Nintendo at a profit with $250 when Nintendo has a great track record of great titles, or someone paying at least twice as much to a company who's taking a loss because they know people won't pay the machine's full production cost, made needlessly high by attempts to force their new proprietary format on the world?
I think forcing people to buy Blu-ray when neither hi-def disc format has very little consumer support is a bigger screw than Nintendo's unusual way of business. It's the difference between the greedy and desperate and the greedy and relaxed.