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There is nothing wrong with Iwata as being president and CEO of Nintendo. He managed the DS/Wii very well and the GameCube was never something he started, he just came into position when it was already out. The 3DS has recovered immensely and the Wii U's problems have only be around for mere months, despite them being quite large problems.

The Wii U can be turned around and it can be turned around without anyone new in Iwata's seat. Nintendo, as a company, need to take this upon themselves. You can not just blame Iwata, who is one man. You must blame the structure of Nintendo as a whole. (Which all they really need to do is hire more. Doing this would increase the output rate, which is where the problem lies.)