Nintendo really needs to fix their online strategy. It's just plain silly for them to place such restrictions on the Wii's online component. Smash would have been the killer app for launching a XBOX Live-like online service for the Wii.
Nintendo has other problems as well though. They really need to start hammering on their third party developers to start putting some time and love into the games. The Wii CAN do very nice graphics IF THE DEVELOPERS PUT TIME AND EFFORT INTO THE GAMES. Look at Mario Galaxy, Metroid Prime 3, or Zack and Wiki. Very 21st century looking. But look at most of the other shovelware that it put out there by these money-first developers who are just looking to cash in on the Wii's popularity. Absolute junk. They know that the casual gamer doesn't really care too much about graphics so why bother trying to make a quality piece of art?
You know, game developers are starting to behave like big movie studios. They just want to make money. Thankfully, we still have the same old quality-first bangers: Capcom, Konami, Nintendo, SquareEnix, etc....
Also, Nintendo is not really doing anything special with the Wiimote. There are no games that take advantage of 1:1 movement... Look at the baseball game for Wii; no matter how you move the Wiimote when you are pitching, it throws whatever type you preselected with the d-pad. That's weak as hell...They could do so much more with the Wiimote. Think of what you could do with a baseball game!!! If you wanted to throw a curveball, you throw it differently than a fastball, etc...
They could do MUCH more with the little white machine! Strive for GREATNESS Nintendo!