They may like Candy Crush for free, but as we've seen many times before, they will Buy games when there is value.
Wii Sports and Wii Fit are sports games, not minigames like Nintendoland, and like I said the Nintendo theme is not something the expanded audience cares for.
Minigames for free have been around forever, its not like they suddenly became super popular, no its the lack of games that the expanded audience wanted that drove them away.
Games aren't the same as cameras, people have had the opportunity to play free games for decades, but they've never displaced paid for games with value.
the Wii U games failed to deliver that value, it had nothing to do with the free games on mobile devices.