I'm a Nintendo fanboy (so to speak, not really but can't find better words), but what I just read here really hurt me.
I'm disappointed in them. :'(
Those "garage developers" are usually people that love games from the bottom of their hearts, but unfortunately couldn't find a job in a development team, nor could they actually form one.
Huge resources are needed for that and most people don't have them. Many of those "Garage Developers" could be real geniuses, could make a game revolution, bring gaming on a whole new level. They can't simply generalize them.
Although, Nintendo does have a point. Selling games, that are truly bad for a low price hurts the industry. People will start thinking that games aren't worth and that development of games costs nothing. They won't buy games from real developer teams. Even a bad game that was developed by a whole development team will have many expenses, therefore, the game won't be sellable under a set prices. But since people "got used" to low prices, they won't buy it. And as we all know, even the best developer teams can and will have a total flop of a game. It can happen to anyone. But... if people start thinking that games aren't worth and that they take no cash to develop, they won't buy it unless the game is incredible. Therefore, a single game could mean the ruin of a good developer team.