Your argument assumes that by setting Wii U to have a lower price for consumers, Nintendo can sell a ton of consoles and gain 3rd party support, which would then profit Nintendo.
But what exactly makes you think the same won't happen with the Wii U that happened with the Wii? The Wii had a low price (like you propose for the Wii U), it sold a ridiculous amount (again which you propose) and it had an innovative control scheme in motion controls (like with the tablet for Wii U). But did that get 3rd party support for the Wii?
Anyway I want the Wii U to succeed, but what you are saying is the exact same thing as what happened with the Wii. And I highly doubt they are going to sell the Wii U for $199. If anything, first party will end up selling Wii U in the end. They will get 3rd party support if they manage to up their game to the standards that the 3rd parties want which we will see in E3. So I guess we can reserve that judgement until then.
