They CANNOT create one device with a TV-output, they'll be killing off about half of their revenue. Wii U, although not selling well, is still creating a good amount of revenue (hardware + software). They will have both a handheld and console, Iwata mentioned that handhelds and consoles will be like "brothers", they were separate entities. They won't be the same power-wise though, they'll just share OS, development environment and infrastructures. They'll probably also have the same CPU and GPU family, but with the console being more powerful, clock speeds higher, more CPU cores, more RAM, more shaders in the GPU, etc. He also mentioned that this integrated environment will be able to work with such vast differences in power, so there's no need for having the same power with each device.
But I still expect Mario Kart 9 for 4DS and Mario Kart X for Wii 2U, they can't be stupid enough to ignore free money like that.
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