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I think it really make sense to make the name based on the wii that has been very successful.
Even a with less successful console, isn't it what xbox and playstation is about, not invest money in a new brand recognition ? Is Apple giving a new name to any iphone ?

Wii 2 would have been better I think (even if MS avoided to have a number inferior to the playstation's one), but the point is more about not spending unnecessary money to get recognition for a new name than anything. Anyway, Wii was quite a shitty name to begin with, and it sold 100 millions or more. I really think if the product is good, at the right price, if there is demand for it... any name is fine.