Nintendo broke all their rules in creating the Wii. They threw everything on a limb with the new controls as a PRIMARY input for their PRIMARY console without looking back; they ditched being able to use their past games to make future ports for long term income and decided to have a historical catalog of all their games called the VC; they completely did away with the idea of advancing graphics technology which was a trend that THEY had started themselves; they had intended to launch all their top franchises, Mario Zelda Metroid SmashBros, unlike any of the launches before it; etc.

Could this have been meant as Nintendo's last console?

I don't think so, though all of these are good fuel to the argument. They did, however, consider the possibility. They knew they had to do something different so they gave it almost all they had by putting as many features and as much of their talent as they felt viable to still maintain a low cost. The low cost and odd marketing (name Wii, simplistic design, Wii Channels, Miis) show that they had actually a hit-or-miss plan to secretly take over.

Does anyone remember the N64 controller? Looked kinda strange didn't it? The reason it was is simple. Nintendo didn't know what to expect with their new analog stick though they knew they had a great device for controlling 3D. So Nintendo decided to make the main part of the controller regular with a D-pad but add an extra grip in the middle to switch to playing analog. Plan A and Plan B, always cover your back end. As with the N64 controller, making it both a traditional AND new controller form, they didn't know what to expect with Wii either and had to consider "outcome B".

A.) If this console were to be a HUGE success contrary to past generational trends, it needed as much leverage as possible.

B.) If this console were to be a HUGE failure as shown possible from past generational trends, then they wanted to go out with a bang.

Either way, they were setting themselves up for what they thought would be an awesome and fun ride. It wasn't until E3 2006, where industry enthusiasts lined up for 6 hours to play Wii for a few minutes, that they knew that they were headed toward "A" instead.

Not all is cozy past the first hurdle: a new problem may now arise from Nintendo. They have one characteristic where they go all out and crazy, but then a more traditional characteristic that makes them become reserved and hold back. Now that they have the A position, I don't know if they know what to do since, though considered, it wasn't an "expected" outcome. They are stunned and I'm afraid they are going to go back to what they used to do which is rely on the tried and true, reiterated franchises/new system colors, with very little surprises. "Don't fix what isn't broken" so to speak. But it's the surprises that got them to where they are right now, THAT is what shouldn't be fixed, and in this industry, you cannot necessarily see the tide shift before it's too late. Once that hype and drive is gone, it's hard to maximize it again. I guess we'll see what unfolds in this dramatic tale of revival of the company who first made gaming a part of our culture.

UPDATE: Nintendo announced WiiFit with a Balance Board for feet and weight input for games. Looks like Nintendo isn't done carrying this new legacy. I believe this will be able to last the sales until 3rd parties are able to pull together quality software and reorganize their teams to develop for Wii, thus taking Wii to the next stage in its life, hopefully in time for Holiday 2008.