Oh boy.
This can be a great idea. A similar idea changed the North American games industry for the better with the NES. No reason why they can't do something similar with the Wii U. Their comments suggest that this is a more realistic possibility than many of us have previously considered.
However, there are points that you make that don't really make sense.
1. In relaunching the Wii U as a toy machine, they shouldn't actually make it a toy machine. That should just be a marketing tactic, just like it was with the NES. It will still make hardcore and casual games, but it should definitely be marketed as a toy machine for those who are none the wiser.
2. The tablet is not to. big and clunky for kids. It's not too big and clunky for anyone. If they want to cut the price, they'll find a way that makes sense.
3. That's not a sound strategy for a games only company like Nintendo. They need a steady stream of heavy hitters, not a few of them.
4. Trying to push Skylanders and Disney out of the market is the worst strategy for a TOY MACHINE. You didn't see Barbie trying to take down G.I. Joe, did you? That's the opposite of what they'd want to do. What they want is do gain exclusivity of Skylanders and Disney Infinity. They want it to be the only place to play your toys.
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