I don't think there is any market left for a discreet Nintendo home console anyway, especially if they're basically building a new platform for all the non-gamer/fitness stuff (meaning you won't need a Wii/Wii U for that stuff).
The only market left for Nintendo consoles in that case is the same group of shrinking Nintendo fans.
So a iPad-iPhone type model for Nintendo just makes sense.
The idea of selling a Nintendo console basically on the back of 5-6 Nintendo franchises and not much else from anyone else is simply a dead end for Nintendo and I think they know it now.
They're not going to compete with Sony/MS for third parties either so that's out. Making an ARM based + mobile GPU console that has games that can be shared on a portable to maximize sales just makes way too much sense.
The fitness division will be their second pillar.
