Dunaway is only acknowledging what Iwata said: they were not allowed to talk about "hardcore" games on E3 stage, because E3 was not about these type of games. Only games demonstrating the new Nintendo values could be showed.
They always recognised this, and no, Dunaway never said it would have been an improvement at all if they took another path.
Remember this message is only for "the people that weren't pleased by Nintendo E3". It's not for the mass market, it's a message to soothe "hardcore gamers".
For the mass market, they delivered exactly the message they wanted to.







