They do look like they're starting to look at how to improve the Direct. Apart from its length, last year's E3 Direct didn't seem any different to me from any other Direct they were sending out last year in terms of format - Iwata making various announcements in between trailers and gameplay, and the occasional cut to another Nintendo developer for some detail on a specific game.
The Smash Bros Direct earlier this month didn't even have Iwata introducing it. The MK8 Direct has completely broken the mould. The video with Fils A-mech looked like fun. (Note Reggie trying to keep a straight face in the glass of water scene 2:57)
As far as promoting a game is concerned, doing anything less than the scale of the Smash tournament they're organising would have been worrying - the 3DS version of the game could well be released within weeks of E3.
I'm quietly optimistic that this 'Digital Event' could be a win. It's clear that there's going to be much more to it than the standard Direct we got last year, and the chance for us all around the world to see the Treehouse streams sounds promising.
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