Wow. I don't know what to say. I disagree with most of your points, but 40mil really isn't all that bad, anyway.
I guess there is the price cut issue. I do think it would help sales, and I do think that the tablet controller makes it worth the asking price. If they're able to somehow differentiate themselves enough from the PS3/360, they should be able to carve out a market for themselves. It shouldn't be too hard for them, all things considered. PS4+Vita is gonna set you back a good $600 at least, so I doubt that's gonna do much to deter anyone from going Nintendo. You could buy two Wii U's for that price!
Also, more games always makes a difference, and there will always be at least a few third parties who are willing to take a chance on a system--especially once it breaks the 10mil mark. In addition to that, new games means more marketing for those games, which will translate to more publicity/sales, and should go a ways towards fixing the misconception that the Wii U is just a Wii peripheral. Actually, even multiplats with "Wii U" at the end of their ads should help with that.
