Also I'm not saying this is a console that replaces the Wii U.
It's not "ermaghad! New console meanz Wii U iz dead, new console means old console is deaderz, it's teh Saturn Segaaaaa!".
Think of it more like widening the Wii U audience if anything, it would be another console that could play Wii U software. So it would be more like a third pillar if you will. Broadening the reach of Nintendo Wii U software, not narrowing it by offering an option for upmarket consumers. If anything it could extend the life of Wii U software development at least on Nintendo's side.
The basic Wii U would be free to service consumers looking for a lower cost option and families/entry level consumers, the newer model could find itself cashing in on disgruntled Sony/MS fans who feel the new consoles are under-speced and don't like perhaps some of the DRM policies (cough *MS* cough) as well as keeping Nintendo fans who are tempted by other platforms because they need their third party fix from fleeing.
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