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Your heart is in the right place but your mind is messing everything up :)

If by doomed you mean wiiU will not sell as wells as say a PS4, then you are absolutely right. But nintendo is gonna do nintendo as always. They would be fine as long as their metric for success isn't to compete with PS4 level sales.

You are right about the casuals though, but wrong thinking that they are shunning the wiiU cause of MK8 or anything related to it. They are shunning the wiiU cause casuals do what casuals always do, jump onto the the next casual platform. Which so happens to be mobile now.