We want to make as big a market as we can with our current product.
Lower labor costs and tax benefits have, for example, caused publishers like EA, UbiSoft, and others to move more production to Canada.
We're all going to be dead in 100 years, so in the meantime if you want to use the most advanced system this year, then you have to buy a 3DO.
There have always been a lot of exclusive licenses and sometimes the publisher cuts some corners or gets a bit lazy and the quality goes down.
HD will only be relevant in the long run if applications like football use it effectively to enable you to see more of the field.