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Wouldn’t this criteria make PS2 and Xbox “peak gaming” also? I remember playing CoD online on PS2 and many praising Xbox for its online features.

Once PS3 and Xbox 360 came in picture, things changed slightly since they relied more heavily on their network services… albeit, PSN back then was free for online gameplay. These were on the same generation as Wii, but Wii was a winner for casual playing.

A lot of aging millennials would agree with this statement. PS2 was peak Sony for sure and the original Xbox is one of the very few things Microsoft got right.
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Xbox360 might not be the most important console out of ALL consoles, but I think it's the most important _modern_ console. Online gaming, online store, an indie game channel with XNA (which itself was revolutionary, even though some of its importance might be forgotten today), HD support. A lot of things it got right back when these were all brand new on a console. Plus it had geometry wars.
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Geometry wars was very fun. I played on PC always trying to top my friends high scores.
PS2 is certainly a high-point in retro gaming via emulation. The huge, diverse game library spanning >10 years, a great emulator in PCSX2 and tons of community mods and HD texture packs make it amazing.

You've got the option of OG authenticity with CRT emulation (although I use a shader emulating a high-end analog RGB CRT so the effect is more subtle) or you can 'upgrade' games to looking and feeling quite modern yet without the modern cruft. Also want to give a nod to PS3 / X360 emulation as both have come a long way in the last ~18 months and I'm really enjoying working my way through a backlog of titles I never played back in the day.

I wouldn't disagree with that!

Mind you, I broke my video game addiction shortly after that time-period - my last console was an Xbox 360 - and haven't got a firm grasp on what's come since.