I think you are confusing "opposed to" with "thinking it's dumb". Nintendo being a third party developer only benefits those who don't highly value their software to begin with. So, from a business perspective it's a bad move.
It's kind of what most third parties are facing now. A lot of them are devaluing their own IP's quickly to jump start sales when they should just create for a business model that is sustainable. Look at Rayman. The title is some of the best quality Ubisoft has put out in the last 10 years, but their business model has made it nothing more than a 20 dollar bargain bin game.
From a consumer's perspective, yeah on paper it would be great. But then I look at things like Sonic and Crash who did the opposite of Rayman and released consecutive uninspired games with wildly varying levels of quality. That is not fun for anyone. Least of all their fans.
So no. I'd rather Nintendo make a niche and sustain their business than destroy themselves on a quest for "mass appeal".
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