Now think how much worse it will get if it was actually true.

Gamepad is a red herring, Software is overestimated, Nintendo needs to address 2 major problems with the Wii U: Lack of Developer Support (Which is just lack of developer interest) and lack of consumer interest.

While strong software (specifically 1st party) can attract consumers and larger base is more attractive to consumers, strong software can also be toxic to 3rd Parties i.e more competition less profits. If Nintendo is arguably the best software developer, what developer would be mad enough to challenge them on their own court.

Thus the need to address consumers with more than just software and since the new consoles are selling more at higher price, price isn't the issue with demand. What else do the PS4/XB1 have? More Hype/Media attention, better 3rd party relations, more extensive network support.

Hype/Media can be addressed with Marketing, 3rd party relations are damaged by Wii U design but can be made up with User Base increase, advertising, and Online Network expansion. The Network can be improved with Money, which Nintendo apparently is sitting on.

The system wouldn't be 300 and selling at a loss otherwise.

It was selling at a loss when it was 350$

They cut the price 50$ and had to change manufacturers due to natural disasters.

Meanwhile competition is using off the shelf parts with slight customization that's cheap as hell and is pretty much 400$

Great post.  This is pretty much exactly my viewpoint as well.  

If the Gamepad was flourishing with new ideas that required it or if it was moving the console, separating it would be the last thing you'd want to do.  But as it is right now there would be a substantial benefit to offering a SKU without it.  None of the big games coming up - not a single one - requires the GP in the way that, say, Nintendoland does.  Not DKC, not Mario Kart, not Smash and most likely not Zelda U either.  That doesn't mean it can't enhance those games; as I said before, playing Wind Waker with it is a dream, but the option would always be there for that.  

It seems as though Ninty is not making it a priority, and if that's the case then there's no reason not to give people an option.  This is why I don't understand the people that say, "Without the GP the WiiU isn't special and is just an underpowered console."  I disagree.  What makes it special and different from the competition is that it's the only place to play Nintendo's exclusive console games.  And I really don't think that most potential WiiU owners mind the system's power... so long as the price is appropriate.

Except that viewpoint happens to be wrong^

Agree to disagree.

They wont do that. What they can do, is find a way to manufacture the Gamepad (or even the console) in a cheaper way. They obviously don't wanna drop the prices of their current SKU ($299.99 is still kinda pricy), so their best choice is to keep the GamePad, but find someway of making it cheaper, but still work just as the original. Much of it is empty space, there's room for shrinking it down. Perhaps they can cut costs there and reduce the price of the SKU. $249.99, w/ slim Gamepad, Wii U Pro Controller, the premium/deluxe stuff, a game inside (Super Mario 3D World, or Mario Kart 8, or Smash Bros, etc), that sounds pretty good if you ask me.

Considering the Wii U can barely support more than 1 gamepad, I don't think they thought it through much at least with regards to other developers.

Sony games are all Shooters, Sports and the odd RPG.  With that kinda crappy variety, I would probably have a smaller gaming catalogue than I did on the PS2.  PS2 gave me the least enjoyment of any console I've ever owned....  I wish I had gotten the gamecube instead back then...  Even now I have like 5 games for PS2 and almost 10 on the Wii U, and playstation was the only console I had that generation.  So don't give me that fanboy bullshit.

As for the question in the thread, unfortunately yes they should.  One of Wii's big features was its low price, and Wii U's pricetag is practically competing with the PS4.  The tablet isn't that essential to most of the games on the Wii U and I think a lot of developers are using it in places they shouldn't.  If a innovation is going to be mandatory, then it needs to wow people first.  The gamepad didn't wow many people, even if it's an improvement for many games, its not a necessity for them.