What makes you think casual money is going to develop 'hardcore' products? If I was raking in money from a new market why on earth would I re-invest it into my old market with a much lower ROI. More likely money coming in for casual is being re-invested into casual. If what you said was true the Wii would have a 'hardcore' line up that put the others to shame.

I don't see this casual money helping hardcore gamers at all. The only benefit I can see is increasing sales of consoles to lower the per unit cost.