No, since they have the weakest hardware, they should stay away from photo realistic games and focus on creating imaginative worlds that can't be directly compared to games from their competitors. What could work is bringing a select number of sports stars into their arcade games to play along Mario.
Also, resources are limited, they should focus on making more and better Mario arcade sports games before even thinking to develop expertise in sports simulations. Concerning racing simulation, trying to rival Gran Turismo and Forza on a weaker hardware would be pure folly.
In the end, most people don't buy a Nintendo console to play experiences that are similar to what you find on PS or XBOX, so making simulation games simply to make sure that the genre is also available on the Wii U doesn't make sense to me (more so if the end product is likely to be inferior due to hardware limitation).
