Agreed. I guess the core of the question is 'what does that ultimately give nintendo?'.

And that's where I think the government needs to step in as it did with copyright and patents, and ask an additional question: 'what does that ultimately give to society?'. The answer is decreased environmental impact and decreased cost of living. The console manufacturers are passing on costs to consumers that consumers shouldn't have to bear - and don't have to bear when it comes to patents and copyrights. Imagine if patents were perpetual like DRM is and rocket engine technology would forever belong to a single manufacturer with the license..?