Agreed. Better advice would be "stay behind the curve." Right now, if you want a Wii, it's expensive. If you're happy playing Playstation 2, it's cheap. A Wii will be cheap 5 years from now when something cooler is out. Same kind of thing applies to computers.
I use this method of saving on home electronics. Home electronics depreciate at a stunning rate, and by buying "behind the curve" you can find great deals on things you wanted a year ago.
This is why I still enjoy, and buy games for, my (refurbished) PlayStation 2 (actually, I still play games on my SNES too). My workstation was dated, so I built a new machine with parts just below top-of-the-line (Core2Quad rather than i7, 600 GB instead of 1.5 TB hard drives, for example).
The advice in the article about new cars is valid; new cars depreciate as soon as you drive them off the lot, because then they're "used." You might get a nice warranty package with it, but you can get extended warranties for used cars from certain dealerships.
I did the same thing around 6 months ago, except I refined it into 2-phases.
I got a Core2Duo E7500 and overclocked it well with a CM Hyper212+ heatsink+fan, for my worskstation.
Spent the money saved on high quality Power supply, case and motherboard.
The next upgrade is a top-of-the-line Core2Quad when local distributors slash prices on those to dump their old stock.
I'm aware there is a trade-off in Electricity consumption
Edit: technical typo
I got a SNES for my birthday last year from my wife. It is awesome!
More seriously I have a PS2 and a printout of the top 25 games for the PS2. Whenever I think of a new game system I can just look at that list, buy any one of those games for extremely cheap and have a ton of fun. (The good SNES games on ebay are a more expensive, but still $10-$20, Chrono Trigger was a bit more...)
