I didn't read the linked article, so I don't know to what extent the Wii was discredited as a console. However, I would have to agree with what the Sony rep said per this audioholics article. In saying that “It's difficult to talk about Nintendo because we don't look at their console as being competitors. They're a different world...” he is admitting that it IS a console, by saying "their console" I mean, he addresses it AS A CONSOLE in the quote given in the article. I would also agree that the PS3 and the Wii are not direct competitors and that they are "In a different world."
I personally own both a Wii and a PS3, and they serve two COMPLETELY different functions. Yes, I will play my PS3 on a daily basis, and the Wii is not turned on as much, but if I have a half a dozen friends over the Wii wins out hand over fist as the better system for fun, interactive, multiplayer content. Granted, I love the online play on the PS3, but it is hard to play with friends in the same room because most of the multiplayer games don't support it. Furthermore, as more and more of my friends bring significant others along while drinking and having a good time, the Wii fits the bill.