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I wouldn't say that it is the "best possible move" being that there is a lot we don't know about it, and there are things I expect that Nintendo could have done which would have been more interesting or exciting ...

With that said, since before the Nintendo DS launched a lot of people have discounted and dismissed everything Nintendo has done; and most of what they have said has turned out to be wrong. These are the same people who are assuming the worst possible things from vague rumors and making the same assumptions that have consistently been wrong with every generation of system to justify their belief that the Wii U will be a massive failure; just like they believed the Nintendo DS and Wii were going to be massive failures.