Nintendo could certainly benefit from a little more diversification in their library, either internally or being a little more third party friendly. However, I think the amount of effort required for them to get third party parity with Sony and MS, i.e. have a legitimate chance of being the console of choice for single console owners, would be completely counter productive. It would costs them money and would only serve to increase competition with their own franchises. I think they simply need to position their console as a no-brainer for the Nintendo fan and a easy/realistic option for those without allegiance and those looking for a second console.
Also we've seen even with the Wii, even when the install base was huge and development costs were still low, many developers found excuses not to put their best efforts forward and I think it's because many are intimidated by competing with the Nintendo software juggernaut on their own turf.
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