Nintendo is doing fine. Because they were so successful in the past, it gives the impression that they are failing now when, in fact, they just arrived to the saturation point much earlier than its competitors. Also, the Wii was designed to attend the needs of Nintendo's developers. Thus, they didn't found important to give it HD capability as they usually work with stylized graphics. Also, they erroneously thought that, being a cheaper to develop system, it would attract new franchises, something that didn't happened as the main publishers were too concentrated in loosing money with costly HD releases. When the 3DS was unveiled, Iwata said they added advanced graphics ability to satisfy third party developers. I guess they will probably give more thought about their licensees needs in their future hardware releases.
Because the Wii was designed to attract more customers than the usual gamers, it was never popular with gaming journalists, as those are gamers and thus focused more in hardcore releases than anything else. Even many of the mainstream media outlets game journalists are focused in hardcore gaming and thus the lack of good word about the Wii. The Wii become popular due to the word of mouth and the good reception from the non gaming media.