I don't really plan on buying into this HDTV thing anytime soon so this doesn't affect me personally, but I feel Nintendo leaving out a feature that the other consoles will be strongly pushing, might really hurt them in both the mainstream and "extreme techie" market. ...Again.
Generally, people like to hear how many nifty, high-tech features the hardware they're buying has, even if they never plan on using those features.
Sadly, situations like the following are pretty common:
Guy: Hey, I've never bought a gaming console before, which is the best?
Store Clerk: Well, the PS2 and Xbox both play DVDs, and support many online games, but the GameCube doesn't.
Guy: What? The GameCube is inferior! I shall buy a PS2 or Xbox!
Thankfully Nintendo's fixing those two problems this time around, but now they may have a new one.
HDTV will be the future at some point, that's certain. When? I have no idea, but I feel Nintendo's really gambling if they think they can go without supporting it until 2011. They may end up looking like the underpowered console.
However, If HD actually does take a long while to really catch on, Nintendo will be fine.
It'd be ideal if they could match their competetion's features
in addition to having the classic downloads and the "magical controller", but I guess the HD feature was sacrificed to keep the console's price lower, which seems to be one of Nintendo's major goals.