Funny how you emphatically state your point only to be proven wrong.

However, I think you're seriously discount the allure of Nintendo's core franchise to gamers out there; the problem this gen for Nintendo has been compounded by a lot of factors.. .bad press... competitive MS.. etc but it doesn't mean that their franchises has lost their gloss. SSMB + the 3 N titles you listed sales easily demonstrate that there is a userbase for games.
Going into Next gen, all Nintendo needs to do is to get their visuals (face shock) up to snuff with a proper next gen Mario+Zelda ... and a good console design (innovative controller or not); they're bound to capture their existing userbase and then some. As long as they don't persist with their fugly games, they'll do better. I think the New Nintendo we've seen is demonstrating that with the new LOZ. I'm going to make a bold claim now but I'll say HALO3 will be a lesser hit. THe hype is over... Bungie screwed themselves over with a great but flawed sequel.
That said... what else is Nintendo releasing on CUBE this year? LOZ? See...they're putting time into Next Gen development so I fully expect the titles to be very well realised for Revolution. Incidentally, Reggie sort of didn't imply it but he didn't discount Mario 128 transferring to Rev too. I think that this is SO going to happen. They'll need a killer title for REV launch.