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Personally I think hindsight being what it is they should have gone ahead and released a "Wii HD" in 2010 (alongside DKC Returns) or 2011 (alongside Zelda: SS) in the same way the DSi had better hardware/more RAM than the previous DS units.

But kept the Wii brand separate and focused on casual/motion gaming for an affordable $149.99 or so. More built-in flash memory to take advantage of the growing indie gaming scene and more emphasis on the eShop.

The Wii U concept with the tablet controller should've been morphed into what I call the "New Nintendo Entertainment System" idea. Dump the silly 33 watt power restriction. Console is larger about the size of an NES (go figure). Much more focused on core games.

The tablet controller is sleeker looking and has more functionality as a living room companion/remote control. System is still relatively affordable ($350/$399) but a huge upgrade on the PS3/360. Can scale in cost down to $299.99 by the time the PS4/XB1 launch.