I think Iwata is doing about as good as he can with what they have. I honestly believe that the Wii U is a capable enough system and that it would be in a worse position with more power. There are a few things it could benefit from (ie; Media player, Achievements, key 3rd party franchises like WWE and NFL) but really, it all comes down to "heat" and the competition just has it.
The 3DS is doing great and the Wii U will hopefully have a library that can't be ignored. Without some sort of hook like the Wii had, Nintendo consoles just don't have the appeal they used to have. Microsoft and Sony are just able to pack so much more into their box and Nintendo isn't willing to risk that kind of money in partnerships that may or may not pay off.
