What's really happened, is that the Wii U has developed into maturity, as is normal for virtually any console that wasn't marginalized or ill-conceived from the very start. And yes, I realize many see the Wii U as being just that; marginalized, with diminishing/non-existent third party support and ill-conceived, due to the Game Pad and general inability to demonstrate the value of the new system to the Wii buying general public who have since moved on to other products.
But after two years, Nintendo has released the majority of its most important IPs, with remaining standouts like Zelda impending, and to the core Nintendo consumer who presumably buys Nintendo hardware to play Nintendo games, this still comes off as delivering what was desired. This ties into the whole "The Wii U is this generation's winner in my family living room" sentiment.
Adoption rates and sales on the other hand, profitability aside, has been about as luke warm as could be coming off the success of the Wii. Overall revenue matters. Growth matters. With as shrunken consumer base, there's really no upside to reverting back to a smaller niche product.
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