Which they clearly proved with the GameCube... Ah...even Nintendo said they could have done a lot better with it.

Hell, the Wii is rubbish in comparison, as was the Game Boy Advance. The DS is the only console Nintendo have had their hands on that's even comparable to the Nintendo64.
I'd rather have fewer brilliant games than lots of rubbish.
Edit FAO Ripper: You never mentioned F-Zero X either or Mario Kart 64.