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I think it seems to me that the console was also designed with the concept that multi-platform games like Call of Duty and Assassin's Creed would provide a much larger boost than they actually did. I think they were also anticipating more multi-platform support than they actually got.

I don't think Nintendo realized how far gone that audience went, I think they figured Wii owners would wait for them to make an HD console, but a lot of Wii owners bought a 360-PS3 already I think to augment their Wii, so in essence that really cut the legs off the Wii U.

It was a miscalculation all around. I think Nintendo's idea was that it would be the Wii experience (casual, fun games) marrying the 360/PS3 multi-plats and people would say "finally! I can play Mario and HD Call of Duty on the same console! It's a console for everyone". (ie: the "U" concept).