I'm going to have to disagree, based on comparisons to previous generations.
Last Generation: Dreamcast, Gamecube, Xbox, PS2, Game Boy Advance, N-Gage, Neo Geo Pocket Color, Wonderswan Color
I'll take the sixth generation over the current because I think the PS2 is better than PS3, Wii is better than Gamecube, and Xbox is better than Xbox 360 (not taking into account backwards compatibility; I'm evaluating them based on their own libraries). And the fact that last generation had a console from SEGA and SNK puts it over the top for me. Dreamcast was outstanding, I love my Neo Geo Pocket Color, and you can't beat the Game Boy Advance.
Fifth generation is my favorite of all time, with Saturn, Nintendo 64, PS1, 3DO, Jaguar, Virtual Boy, and Game Boy Color. Saturn and Nintendo 64 are my two favorite consoles ever, and PS1 is my favorite Sony console, so fifth generation wins. And I'd also have to call the Game Boy Color my favorite handheld of all time. Other consoles are just a bonus, even if they were overpriced failures they had some good games (Virtual Boy Wario Land, Super Street Fighter II Turbo and Gex for 3DO, Tempest 2000 on Jag).
Fourth generation had Genesis+add-ons, Super Nintendo, Neo Geo AES, Turbografx-16+Turbo CD, Game Boy, Game Gear, and Atari Lynx. I would call each of those systems great, SEGA 32X not withstanding. Fourth generation is probably my second favorite of all time.
I would put this generation on par with third generation, with NES, Master System, and 7800. Mostly because Master System and 7800 had small libraries and the generation as a whole lacked a major handheld. And I'll take second generation over seventh any day. Colecovision, Intellivision, 5200, Odyssey[sup]2[/sup] and 2600 are some of my favorite systems out there. I reckon you'd have to call first generation the worst, even though it doesn't seem fair since it was primarily Pong/Odyssey variants.