Heh, at least the games company you started gaming with still makes some good games.
I began gaming with SEGA...

*shudders at Sonic 4...*
On topic, you're simply bringing to light the condition of the games industry as a whole. It's changing frantically, and a lot of people are uncomfortable with it.
The 'hardcore' gamers aren't happy with their entertainment medium of choice being opened up to a mass market, as they miss the exclusivity and the idea of something just for them and like minded people.
Not only that, but games companies are struggling to think of ideas to satisfy everyone. As much as it's a good money maker that video games are so mainstream now, it also makes it harder to please their whole demographic, and find a good middle ground.
There's also the problem of how games companies try to put across these new ideas. Let's face it, it's difficult to be original when so much has already been done. Not only that, but taking big risks on new ideas is financially risky, especially with the current state of the economy. Why do you think Activision keep selling a new Call of Duty game every year? It's a guaranteed money maker.
From a money making standpoint, Nintendo are playing it very smart. They're really trying to push the idea that they're more about new gameplay ideas than simply better visuals, which they market really well, and these new gimmicks really attract the casual crowd as they look interesting, new, and most importantly, foolproof. Simple control schemes will always attract a casual crowd. They avoided the problem of the motion sensing fad ending by going back to the 'hardcore' crowd, while still sticking to their new business model.
Personally I'm not a fan of modern Nintendo games and consoles as a rule, but I believe they are really trying to keep gaming fresh, and avoiding the path of set standards.