If people continue to ignore Nintendo consoles ... then people may get their wish soon enough.
Nintendo will probably try the hybrid approach next, but the era of the full blown "Nintendo console" is probably nearing its end, there's just not enough of an audience to sustain it (barring a Wiimote miracle) and each console generation gets more and more expensive.
15-20 million people is not enough of an audience to justify making an entire console for, not with the way game development budgets/costs are today.
That said Nintendo's had a hell of a run, 30 years of making hardware in this industry would be like being in another business for like 100 years. If this is nearing the end, then they can hold their head up high. The game console itself may become a bit of an obosolete product in 10 years entirely.
In 10 years (give or take) I think it's quite possible you'll be able to get all your entertainment (TV, movies, games, music) through a centralized streaming/cloud service, you can sort of see things moving in this direction already, content providers like Apple are trying to make deals with big cable companies like Comcast ... that's the ultimately going to lead to that.
