I think everyone forgets the fact that to be able to use every functionality of a Wii, you need to buy the nunchuk, and most like a second controller and a nunchuk, so your already at 400 There, so a 100 dollar price difference really doesn't matter.
Yes, wireless is expensive for the xbox 360, but who cares about wireless. Broadband will alway be more superior because of a constant connection without interference and most TV units and rooms that are new are built with a patch cable jack in mind. At least you should, which im sure would be cheaper than wasting money on wireless everything.
What it comes down to, Sony chose to be different using Blu-Ray in its next gen console. It still hasn't caught up to the real world that people can afford it compared to dvds, and look, the xbox 360 using a dvd format can still pump out with the same titles even on dvd/dual layers.
Granted xbox 360 had the attachment with a HD-DVD external drive, but it didn't take off, because no one cares.
Ultimately this console is great, and 399 is still a bargain for what it offers. But it won't compete when developers, and the fact dvd media is far cheaper. So it needs to reduce the cost to make sales elsewhere on games/media etc etc.
PS2 innovated with the dvd format, but going to bluray this round was a mistake until it was feesable, especially in todays ecomony
Nintendo and xbox 360 pricepoints are acceptable in my opinion.