I could speculate all day long
I do remember reading about the good 'ol N trying to setup some sort of internal social network thingie (*in the voice of Scott Pilgrim movie version)
You are right though, as "youngster" I never saw Sega changing their business plan and failing so miserably in the console dept.
I'm curious in seeing what Nintendo's long term plan is. I never fully bought into the Wii, but I am actually considering making the plunge into the new system, their franchises in HD being the only real incentive. Ditto on the 3D but the XL version and I can hold off to see if they make it a dual stick.
Still early though and I've got more than enough PCE games to keep me entertained, not to mentioned a shit to more I want to own.
Anyway, I don't see Nintendo going away any time soon or "watering down" their portfolio.