This would have been a far more effective argument if we were talking about the DS. That's where a lot of the poor localization occurs. As it stands, there's only 1-3 games that legitimately should have been ported over to a region they weren't. Not a huge deal considering some of the great games regions outside of Japan have missed in the past.
@Claude-I still want to play GiFTPiA! Speak for yourself!
Regarding making western oriented games, I don't think that's entirely necessary. Nintendo's strength has always been their ability to create software that is understood and loved around the world. Narrowing their development studios to create western games is almost as limiting as what they do with these low budget japanese flavors. Unless Nintendo is specifically looking to get into a western licensed endeavor like professional sports again, they should stick with what they do best, which is create the best software for everybody.