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I think what Miyamoto is saying is he doesn't want a repeat of the fourth generation where we saw, "Mario is Missing", "Typing with Mario", and the dreaded CD-I games.

Sure its popular perception that Mario is whored out, but he's by no means been whored out to an extent that would ruin his character. Nintendo obviously doesn't want to use the character as a crutch nor do they want to feed the perception that Mario is an overworked mule of the company.

There is some humor to be had in this, I just find the distinction between which fanbase finds this funny and which one doesn't somewhat dubious.