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If they can get the Wii U down to $199.99 by the time Mario Kart 8 launches they may have a chance at having a respectable 30 million-ish userbase, which is at least decent.

Iwata always has said they waited too long to drop the GameCube to $99.99.

I don't think they should abandon the tablet pad though ... go ahead and make a Nintendo Land 2 and bundle it together with the pad. Just sell it seperately. 

You have to get the console in people's homes first though, that's more important than trying to sell a controller.