Not sure how they ruined their reputation. With whom? Hardcore gamers? Because outside of that small niche of people, most people love the Wii. Check out the sales of each console from Wikipedia:
Worldwide sales figures
Wii – 86.01 million as of 31 March 2011
Xbox 360 – 50 million as of 6 January 2011
PlayStation 3 – 50 million as of 15 April 2011
The Wii opened the door for "non-gamers" to enjoy video games and they somehow ruined their reputation? Do you think Xbox Kinect would exist if the Wii was never invented?
As someone who owns an Xbox 360 and a Wii, and has been playing video games for about 20 year, I will say that the Wii has produced some of the best games I have ever played: The two Mario Galaxy games, Metroid Prime 3, Mario Kart Wii, Zelda Twilight Princess, Super Smash Bros. Brawl, Golden Eye 007, Donkey Kong Country Returns, Kirby's Epic Yarn, New Super Mario Bros Wii, Super Paper Mario, MLB Power Pros.
Can't wait to see how they are going to revolutionize the industry this time around.