"Your future of gaming seems predicated upon whatever Sony decide to do. "
Not really, it just seems like they're doing what Nintendo says they want to do, taking the industry and moving it forward. So in that sense, yes it is predicted upon what they want. They also have MS pushing it forward too with Live.
"They aren't offering less, just something different in connectivity."
As a whole of what the system is capable of, yes they're offering less. And connectivity isn't a good alternative when most developers and consumers don't care about it. Nintendo wants to talk about something people don't care about, that's it right there.
"As above with the case of CD they don't like to incorporate technology where they have a built-in disadvantage."
Not even when the advantage will be much more rewarding in the long run?
"They are offering a technology that plays to their strengths, hooking a console up with a portable gaming system."
And being dominated in the process. Doesn't seem like a good idea to me.