The problem with the N64 Dream Team isn't with the broad concept itself, it's with the execution. The cartridge format (between its drastically higher costs and its itty-bitty storage space) was basically so terrible that no one wanted to dev for the system; the "Dream Team" itself was underwhelming (even from the perspective of 1996, did a team consisting of LucasArts, Midway, Acclaim, Virgin, Angel Studios, and Sierra really strike anyone as fitting the moniker?) -- and it focused on bringing in developers rather than games.
Taking the same strategy with the actual top-shelf developers (start with Square-Enix and Capcom in the East, and probably an EA subsidiary in the West, then don't bring in anyone else who can't at least meaningfully threaten to compete on the same level) putting the focus on individual titles that Nintendo would promote as major exclusives for the system at exactly the same level that they promote their own first-party titles, and then offering sweetheart (but not full-funding) deals either to the same developers when they want to come back to the well, or to devs who've converted over to the Wii line of thinking after seeing the previous games do well, that's a lot less like the N64 Dream Team in execution and more -- wait, I just described the Xbox 360 third-party strategy.