I disagree with pretty much everything you've said

Nintendo hardware was never really ahead of any curves. Gameboy for instance (I was an Atari Lynx man!). You could argue SNES but it was a few years after Megadrive and so by that time bound to be stronger hardware. You say they stopped innovating but then go on to say they innovated with the Wii... which, shovelware aside (Nintendo themselves don't make shovelware, they just let other companies release it, like Sony did on PS1 & 2 etc), had profound impact on the industry.

While motion controls themselves are pretty much gone from the other systems, they're alive and kicking on mobile. The 'ease of use' they promoted back then is still in full force industry wide, as most developers agree games have become too complicated and everyone is trying to get back to the simplicity of past generations.

The original Nintendo DS had shitty hardware just like all their handhelds before (and after) but the introduction of secondary screen, and most obviously touch based gameplay - they were the forerunners of this while people were still playing Snake on their Nokias pretty much. Now virtually every mobile game owes something to Nintendo's work on the DS.

They are no doubt the slowest to change, something i think owes more to the fact that they're Japanese than that they're old. Old may be responsible for being overly cautious though.

You have to remember they're primarily a games developer and have lacked sufficient in house OS and networking capability for far too long. Unlike Microsoft who obviously have OS experience. Until recently Sony's network stuff was pretty crap as well for basically the same reasons. Not excusing Nintendo, but they have made strides - a bit late - but at least now their online has at least been stable, and if they're to be believed, should be improving greatly in the coming years with proper accounts and inter-system purchases.

They may be slow and stubborn, but the heads of company are some of the most clued in people in the industry - especially in terms of understanding what makes a good game still, and that hasn't and probably never will change. You should have a read if you haven't already, of some of their financial briefings and Q&A sessions here: http://www.nintendo.co.jp/ir/en/index.html , where it becomes quite obvious Iwata is the best person to be running the company.

If you read back a few and see the path they've taken to approaching DLC come to fruition for instance... where they are pretty much the only company not trying to completely rip people off ... it's hard not to have some admiration for that in this day and age.

Iwata's stance on the impact of 'race to the bottom' pricing structure (from his GDC speech) will one day soon be looked back upon as completely correct as well, whereas pretty much everyone else in the industry was clueless to it at the time.

While you could argue they don't innovate in hardware in the fashion you're after, they do in others, and it's undeniable that they're the best at innovating in software. Look no further than Splatoon, essentially a completely unique take on the shooter genre. 20 years after Doom, it's not an easy thing to reinvent and yet on basically their first go, they put together a complete, fun and awesome new game.