I agree the Wii is doing terribly, but I wouldn't put that much !@#$% on it compared to the 360 and PS3.
I think games are just sucking generally. I can understand games have been getting better, there certainly have been several more well-made games in the last however many years, but I don't feel there are many games I've been enjoying. I mean, sure, Mercenaries, Battlefield, Gears of War 2, Metroid Prime 3, Mass Effect, all of these well-designed games, but I'm just not feeling the PASSION behind the developers. It seems like they know how a good game should be made, and they are doing it, but they're not making it enjoyable, imaginative, or fun. We just keep getting space shooters with generic gameplay elements based on Halo and even-more generic themes.
Basically the only games I'm looking forward to in the next year is Resident Evil 5 and Banjo-Kazooie: Nuts & Bolts.
On the other hand, I'd have to say the Nintendo DS has been doing extremely well as a seventh-generation platform. I think it has the best library of games, which continues to grow by the day.