Interesting article, but I think it's not so bad Nintendo will do something as desperate as completely reimagining the Wii U as a health and wellness product. Like that would work, anyway. Casual gamers buy consoles once every ten years, so they're likely quite happy with their Wii Fit and will be for years to come.
Let me venture my own thesis. The Wii U was destined to do poorly it's first two years on the market.
The Wii U tried to be a hard core console, or at least harder core than the Wii. The problem was, aside from the cute name and the gamepad, most gamers like that were probably going to wait for a Sony or Microsoft console, anyway, and would only buy the Wii U if both were hideous flops. It would have helped if they had launched with more games around launch, but for 80% of the target market, an early sale was impossible.
And of course, Sony didn't drop the ball, so the Wii U couldn't have sold well until summer 2014.
Thing is, the Wii U does fill a valid niche in most living rooms because of the second screen. About 6 months after the competitors have done their hardware and the hype has cooled off is the perfect time to advertise the Wii U as a SECOND console, for people who already have a main console and could use some second screen support. Might need a firmware update for that, but still entirely doable.
And like I've said elsewhere, I think an ad campaign like that is the perfect excuse to ask Sony to borrow Legend of Dragoon.
If X, Zelda, and an ad campaign like that all do nothing by Summer 2015, THEN panic and pull the plug. You've supported the console for a reasonable run with most of your major titles and it has failed to take into a niche in the market.