Their worst enemy is image. Most of that is their fault, but there are external factors that cause it as well. It is why they were in such a predicament with naming the Wii U. I personally think they should have completely renamed the system. But their argument which is a good one, is that owners of the Wii might not think the newly named system is a good next step purchase for them.
Thus they stuck with the Wii branding, and all the positive and negative images that come with it. Personally I think they have turned out to be more negative than positive. I think Nintendo agrees with that after listening to their comments after their financial reports.
So I do understand where you are coming from and Nintendo is going to have to find a way to change their brand without alienating people but also changing perceptions of mistakes they have made in the past (not embracing HD, not embracing online, not providing a system that pulls in developers, etc.)
