OP asks: "(No, not you the completely detached from reality fan)"
Most of the replies are from completely detached from reality fans. Hahahaha gotta love the web.
About the fear of nintendo giving up on launch another console, i don't know, the heads of the company are more developers than bussiness mans, so there is a big chance that they keep trying, even if the market analysts keeps saying STAHP. But, iwata actually hinted that they almost give up on the the project prior to the launch.
"Hardware design isn’t about making the most powerful thing you can.
Today most hardware design is left to other companies, but when you make hardware without taking into account the needs of the eventual software developers, you end up with bloated hardware full of pointless excess. From the outset one must consider design from both a hardware and software perspective."
Gunpei Yoko