I dont think Nintendo will be back 'on top', but ive always liked Nin games, and have played the main series since i was a little kid (zelda, mario, metroid, etc.). I think this controller will be pretty successful in the end, even though it looks goofy as fuck on the screen. Its going to be WAY better for FPS games (aka Halo) because of the addons they are able to put onto it. But I dont think consoles are meant for FPS games anyway, Halo is fun but overrated (especially when you've played the real shit like Quake 1-3 and HL2 for years).
I still think PS3 is going to be the best of the new systems.