I don't believe the name 'confusing people' for a second. People aren't that stupid, mostly. They know perfectly well what the difference is between the iPad 1/2/3/4 while they are almost exactly the same, even have exactly the same box and aren't even officially called as such (they're all just 'iPad'). Why is that? Marketing.
That said I do think the WiiU would've sold a tad better if wasn't called the WiiU. Not much though, because every other factor would be the same as they are now, but a little. If only because the 'Wii' name is synonymous with 'casual' in the eyes of the self-proclaimed 'core-gamer'.
Nintendo also should have put the emphasis on the 'U' rather than the 'Wii'. Make the 'U' big in the logo and 'Wii' small so you make it clear it's about the 'U' that's new.
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