The only game (besides the Mario Party/sports games) that catered to casuals at that time was Animal Crossing, but even that had NES games to play. the N64 WOULD have been (and should have been) the best Nintendo system ever (Best Mario and Zelda games in the series, first 3D system, the first ever M-rated game by Nintendo), BUT it had huge flaws- mostly due to a huge fallout between them and their former Second party company, Square. This is where the major problem with Nintendo began- lack of third party support. all of the critically acclaimed games (except Goldeneye) on the N64 were only Nintendo games, and everything else was an underrated cult classic. this was what cost them the console war of the N64 era and what nearly killed them in the GC era- besides, most fans actually consider the SNES as the best Nintendo system(yours truly included.)
And they didn't complain about the game's quailities-because the games are still good. You make it sound like Galaxy and TP were crushing disappointments worse then the CD-i games, when that's obviously not true. yes they were not quite as good as 64 or Ocarina, but then again, do you see Konami fans saying the company is abandoning them because they haven't made a game as good as SOTN? or Capcom fans saying that because MM9 was not as great as MM2? no. Besides, what they were complaining about was that THEY DIDN'T GET more games- which is sad, because 3 new Marios, 2 new Zeldas, a new Metroid, a new Professor Layton, a new Golden sun, and a new Sin and Punishment should be more than enough. Yes, there are Casual games, but a ton of said games are based of games from the past. Wii Fit/Wii sports is pretty much World Class track Meet, Brain Age is DK jr. Math, and Warioware:Myself is Mario Paint combined with...well, Warioware. and Professor Layton is an Adventure game, which is one of the ORIGINAL hardcore gaming genres. It's like I said, they are catering to EVERYONE-and developers noticed, when the Wii and DS started getting more diverse games on their systems, like HOTD Madworld and a GTA game. but no "fans" noticed. big surprise.