This is one (of many) reasons why I'm baffled with Nintendo's direction with WiiU. It was obvious that tablets (and most likely Android home gaming systems) would outstrip WiiU on power before the end of this coming generation. Fact is, they will be comparible when this gen is basically still starting, which puts Nintendo in direct competition with them and at a hugely disadvantaged price points ($300 home game system & $60 games vs Free (Gamepop Mini) - $100+ home game systems or $500 tablets (which do all sorts of other things and are fully portable) and free - $15 games.
As others have posted there are all sorts of ways to play without touch controls now (if you want) and more and more phones/tablets will play off TV too.
EA and other 3rd parties will be porting all their old and some upcoming games direct to these systems (and still not to WiiU). This will also undermine PS4/XB1 (which is why MS is so focused on multimedia) but at least they still won't be outdated powerwise until closer to the end of the gen.
Nintendo's best defense would have been active, family-based gaming like Wii specialized in which tablets/Android systems could never touch. But instead they make a system that specializes in touch-based single play. D'oh!
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