As always, the Genius Miyamoto never ceases to amaze me. Nintendo has invented a unique peripheral that Sony and Microsoft will (eventually) blatantly copy, much to our dismay. But Nintendo thought of it first!
This is why I love Nintendo. They always think of something fun to play before the competitors copy them...
Now Microsoft is ALLEGEDLY making a Wii-style remote for the 360. Unlike the Wii, this remote is not essential for playing the 360. Therefore it will be used for niche games much like the EyToy on PS2.