A. I wrote this.
B. Yes, Nintendo took a loss on hardware after launch, but returned to profitability with software and declining costs of the hardware down the road. Addressed in OP.
C. It would be difficult for any dedicated handheld only device to reach 100+ million in a market/climate that is already shrinking. To claim that the "3D" is what shrunk the market is ignorant of the impact that mobile phones have had on it. Addressed in OP.
Fantastic read! Loved it. Don't bother the naysayers, your point is just great
General gamer, fanboy hater