Is LittleBigPlanet A Game Changer?

Thanks to the old Curmudgeon for bringing by this link:

But the game has managed to do what console titles have thus far shuddered to provide - an open, easy to use creation system that lets the community make the magic, while the creators stand back and marvel.

Why is this such a big deal, and what makes LittleBigPlanet's air of creativity so different?

-- Opinion: Why LittleBigPlanet Is Web 2.0 For Games, Fulfilled

It's a pretty insightful look into the game and touches on or relates to things we've discussed here before: the evolution of mods, the community that consoles have the potential for and the power of user friendly creation tools.

While chatting with Matt on it, it occurred to me - does this signify Nintendo dropping the ball on the concept? Super Smash Brothers held a lot of promise for the Wii on this front, but most of that seems to have more or less evaporated after the release. Nintendo has a relatively mature network - but one burdened by its own concepts of linking users. It's got a massive user base ... could the big N being doing more to empower them?