It's true. This is business. This is why Nintendo laughs all the way to the bank whenever countless kids talk about how terrible thier games are.
For the gamecube to be a failure in every aspect of gaming, it would have to fail to have any games. While the Gamecube lagged very very far behind in terms of third party support, and as a result, software, it did manage to have some fantastic first party games. Nintendo seems to have finally shaken off that arrogance they had by the N64 era and is actually seeing support from third parties now. The blanket term 'gaming' you use in describing the Gamecube's irrelevance is weak. Different people have different taste in games. While the Gamecube is unable to satisfy most peoples tastes with its lack of a diverse game library, it does have enough games that are worthwhile for it to not be considered a failure in gaming.
The virtual boy; that was a failure. The 3DO, the Jaguar; both failures. The Dreamcast; also a failure. Why were they failures? They failed because they didn't make enough money for thier parent companies to be sustained on them; in a business, this is failure. The game industry is a business, and as cold and unfriendly as that may seem, it's how things work. The Gamecube is the only one of the three current gen consoles that brought in a profit- Microsoft and Sony stared at pages of red ink until only recently. Those who keep saying that the only anti-PS3 argument around deals with price must remember this -- it doesn't matter what Sony says they're giving you, or the supposed 'value' of having a Blu-Ray player for such a price; the PlayStation name carries the stigma of being a Game console. Justifying a $600 price tag for the average person is a very difficult matter to work with if your product carries that sort of stigma. It doesn't matter what kind of power the machine has under the hood, or how many times Sony labels it as a computer- the PS family name is now known for gaming, and that is going to be tough to change.
If the Wii cost $600 and was a powerhouse, I wouldn't buy it. If the 360 cost that kind of money and was a powerhouse, I wouldn't buy it. Fanboys and Blu-Ray be damned, $600 is a lot of money to be spending on a single game machine! Most movie buffs are wary of Blu-Ray because of Sony's track record of failed proprietory formats, even if the picture quality is better than sex. Personally, I'd like to be able to have all the game consoles, but price has always been a barrier. If I could get a PS3, then fine, I'd take it. I'm not particularly interested at the moment, but all the big name consoles are bound to have at least a worthwhile game or two. I'm pretty sure Gradius VI is gonna be on the PS3, and I will not miss Gradius VI, but I'll have to find somebody who's willing to spend that kind of money and has similar taste in games with me in order to make that happen. I simply cannot afford $600 at the moment; hell, I can't afford $300. I'll be lucky if I can afford a Wii, so price is a very big deal for me.
I'm not going to speak for anyone else; just myself. Until the PS3 drops a couple hundred, I'm not interested. Besides the price point and my general distaste for Sony's business practices, I'm somewhat neutral on the console itself. Until I see some Gradius VI screens, I'm going to wait.