Nintendo has often hired some stupid people. Perrin Kaplan for example. People who don't know the industry, and try too hard to promote/defend Nintendo. Reggie borders on that.
Luckily their PR isn't 1/10 as bad as Sony's.
As for not reacting to trends very fast:
At the moment they don't really have to, but I do think they realize they'll need to in the future. Already we can see careful steps in the right direction.
- More games have online multiplayer now, some don't even require friend codes.
- They experimented with achievements ('stamps') in WiiSort.
- The Wii has tons of fun online channels... It just lacks a good friend system for them.
- They admit the pressure the Zelda team feels from Monster Hunter 3. I suspect that the Wii has shown them that graphics DO matter for a big clunk of the market. Heck, they're even talking about 3D for the next handheld.
- The SD storage for Wii is a good step in the storage direction.
- They might be ahead of their time with wanting people to download a (VC/WW) game each time they play it. It would work with a better interface and faster internet.
I have good faith that their next console will incorporate almost all features that this thread discusses. Maybe not 100% perfect, but enough to satisfy the geeks.