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Because I think they worry that cheaply priced games (like the VC) would hurt sales of new games as people would load up on cheap games and not buy anything else.

Not saying I agree with that, but I think Nintendo's position is that moving away from the standard formula of the $39.99-$59.99 video game is very bad, Iwata said so as much at GDC a few years ago when he railed about smartphone games devaluing the business.

That's why they slow release VC games IMO, there's no reason the Wii U shouldn't have all the VC games the Wii had by now.