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This ruined everything.
It funneled a massive disloyal, casual audience into the market, which Sony and Microsoft chased in the form of Kinect and PS Move. Once the fad was over, all of those millions of potential customers packed their bags and moved on to their iPads, leaving Sony to abandon the PS Move, and Microsoft with a device whose market was falling apart.
On top of that, it basically ensured that third parties wouldn't want shit to do with Nintendo for the longest gaming generation on record when they realized that people were just buying Wiis to flail their arms around like idiots in Wii Sports. It also contributed to the death of a large majority of their IP library because they couldn't figure out how the fuck to make their IPs work properly with that piece of shit controller. Nintendo also forced their development dollars into this stupid shitstick instead of developing a proper system for a connected, HD age.
The Wiimote ruined everything.
Not a popular opinion tbh, and i personally wouldn't want to play the likes of Sin and Punishment, or Pikmin without motion controls, but that said, i agree completely.
The Wiimote is an excellent controller that should have been an optional controller for certain games. Forcing motion controls was a nightmare, and it led us to all the problems you mentioned.