"I don't like it, therefore it's useless" is not a very good argument.
My video game system that was built in the age of the internet can keep track of my achievements online for me. When I'm 500 miles from my home to visit family for Christmas, I can pull up my gamertag and gloat about how I got more achievements than he did. And any of my online friends can do the same thing at any time. I can go look at Mottzilla's profile right now and see what games he's played recently. Usually, based on how many achievements he got I can tell if he liked the game or not. So without even talking to my friends, I can look around and see what games are popular and worth my money. For example, I know my brother plays MW2 and Halo 3 at pretty much the same time every night, because when I'm playing BioShock 2 I can keep tabs on what he's up to. If I'd buy MW2, I could start a game with him *right now*. Some games let you take screenshots and send them to others over XBLA. I'm sure one day we'll send videos to each other. I can voice chat with my brother if I want to; it's like a phone call! If we had webcams, we could video chat.
Or I could go with Nintendo. In their version of the world, the internet is no big deal, definitely not a world-changing invention that's become ubiquitous in their target demographic's life. On my Wii I can... tell how long I played a game yesterday. If I want to see what my friends are doing, first I ask them for their 12-digit code. Then I give them my 12-digit code. Then we enter the codes and respond to the double-opt-in prompt. Now we can send text messages to each other when we start playing games. Or we could just use an IM client, or email. AOL popularized a communication medium more than 15 years ago, and Nintendo's still working on it. If I start playing one of the few games with internet connectivity, I can only tell if my friends are online if we've both entered each others' 12-digit codes. Oh, and the list is limited in some games (Animal Crossing is the worst.) We can't text chat in the game. We can't voice chat in most games. I can't tell what games my friends are playing, and I can't tell if they like them or not. I can't tell what games they've finished. I can't tell when they're online. Nintendo wants me to use a phone or computer to do all of this stuff; you even pointed out I could get something "like" achievements if I use web hosting. Screw that. It's not just stupid, it's completely boneheaded and brain-dead.
It is the year two thousand and ten. The internet has existed for more than 40 years now, and it exploded into ubiquity 15 years ago. The first game console with online connectivity was released 12 years ago by SEGA, though you could also argue that Nintendo had something similar with Satellaview in 1995. (we'll ignore the largely unsuccessful SNES/Genesis modems.) The next console to get it was PS2 in 2001. Then XBox Live opened up in 2002, the first really successful online gaming service for a console. PS3 followed suit. XBox 360 followed suit. Nintendo is the only big 3 manufacturer that has not introduced some kind of online community service; they've been beaten to the punch for more than a decade. Forget that.
If you want to do yoga by yourself or play minigames with friends, Wii's got your fix. If you want to play epic, massive games and share the experience with your friends, you only have a few choices and you can't do the "share with your friends" part. When you *can* connect to the internet, it's only through a sterile portal through which Nintendo will only allow you a minimal amount of expression because you could say a dirty word. Animal Crossing is a godforsaken social game. You are *supposed* to play it with your friends. But setting up your town to accept a friend is a 5-step process that involves a two-way trade of 12-digit codes, and when the friend shows up in your town the total extent of your social interaction is limited to 8 "emotions" of which you can pick 4 to carry with you. Yeah, there's the Wii Speak microphone. I'm the only person I know that has it. I would cream my pants if Animal Crossing were more free and open like Farmville, Webkinz, Club Penguin, and dozens of other social web games that were designed to be played by children. SOMEHOW these companies have solved the problem of profanity and internet trolls without a need to remove every possible form of interaction or self-expression.
There's nothing right, appealing, entertaining, compelling, exciting, or social about Nintendo's internet strategy on the Wii. To defend it is to display dangerous amounts of fanboy loyalty. I have turned my back on Nintendo, and they will have to earn my love again if they want it. My feelings are hurt. I spent years evangelizing for their stupid mistakes. It took ridicule for giving their consoles a chance. In the end, they care not because I'm not an impulsive soccer mom who drinks martinis while Wii bowling and enjoying the only time in her life when she's alone and away from the husband she despises and the children she hates. They practically don't even make their own games anymore. Who makes Metroid? Retro, Tecmo, and any other third party that pays for the license. Who makes Star Fox? Rare handled that, and Nintendo hasn't really produced much since they were out. I wonder how long until a third party makes the DK games? Mario and Zelda are the only franchises left that are sacred, and they've let Capcom make a few Zelda games in the past. No, they are too busy devoting resources to Wii Sports clones to work on the bread and butter.
Nintendo will never be out of business, but I have a feeling in the next generation they will be completely insignificant.