Having the Wii games on the SD card locked to the Wii they were downloaded from is not at all unreasonable as long as you can transfer them back and forth between the Wii and your SD card.
Of course, if your SD card gets corrupted or your Wii dies, you really need to be able to re-download the games. But from what I understand, Nintendo makes this a HUGE PITA, which is really stupid because consoles die and SD cards get corrupted, and it's just insane of NIA to say "well, sucks to be you, dude".
I understand their concerns about about preventing piracy, but the reality is that if you assume all of your customers are criminals just waiting for the opportunity to steal from you and treat them as such, many potential customers will simply go elsewhere for their downloadable content (which just hurts your platform in the long run).
I think Nintendo should take a look at Steam and GOG as examples where if you price downloadable games reasonably and make them easy for people to use, lots of people will buy tons of stuff that they wouldn't otherwise buy. Also, the people that are going to steal stuff are going to steal stuff regardless, but there are plenty of people that will look for ways to circumvent DRM simply because they want to us the games they bought in a reasonable and fair manner and the easier you make it for them to buy stuff, the more comfortable they will be knowing that they'll be able to use what they buy now and in the future (just like if they bought a physical game).
I agree that there are tons of things that people might say they want that I think are pretty silly (such as Twitter), but as far as things like supporting their older game libraries, whether you think it makes sense or not, I think there are a bunch of people that would buy downloadable versions of their old favorites just to have a copy of them to play on their newer devices. Hell, that's one of the reasons why GOG and Steam are successful.
But yes, as someone that likes my 3DS, it is embarrassing to see them deliver something so pitiful and insulting. I want them to be successful because that helps everyone win, but boneheaded moves like this aren't really good for anyone (including Nintendo).
Personally, it doesn't affect me that much. But when I look at how easy it is to work with the PSN store with my (well, my family's) PSP-2000, PSP-3000 and 2 PSP Gos, the Apple iTunes store with my iPhone 4, iPhone 3GS, iPad 2 and iPod Touch, and with Steam for game I can play on my PC and Mac, and how much money I've spent at all of those stores...I have no doubt that Nintendo is losing money as a result of their decisions.
But I am looking to pick up some free games on the store next week and we'll see what happens. I don't need the store to be perfect on Day 1 and hopefully they'll get around to doing things right (or at least better).