It's redefined each generation. This generation is about motion controls as the top seller of all time, the Nintendo DS, has motion controls alongside its console brother the Wii which also does. Sure the 360 has stream lined the online experience, however it has also introduced gamers to the closed era of consoles. You want a bigger HD? Sure just pay an absolute premium on it. Not to mention the 360's hardware problems which have been conveniently forgotten.
The fact that you're comparing the Wii to flash games is absurd. It's fine not to like the Wii, I know I don't like it besides some drunken debauchery, but its impact on the industry is clear. Clear enough that Microsoft and Sony are both coming out with motion control products in the next year.