Truth be told, maybe there's just a more fundamental issue at play here ...
Ultimately the mass market decides what direction they prefer by voting with their wallets.
And I think it's been largely shown the last 20 years that people overwhelmingly want a system that is more of a electronics device (rather than a toy/family aimed product ala the gaming scene in the 80s/early 90s) and has all the major third party support. We had this referendum during the PS2-GCN-XBox era, and people overwhelmingly chose Sony's approach.
The Wii is the only console ever to have mass market success for a few years without benefit of great third party support, and that was more of a flash in the pan, not a sustainable business model going forward (and if it was ever sustainable, Nintendo sure as heck doesn't know how to to do it, which renders it moot).
I don't think many casuals were upgrading their Wii ever, it didn't really matter what Nintendo did.
People have a fairly set idea of what they want in a console today, and you either provide that or your system is not going to sell past 20 million or so at best. Doesn't matter how many wonderful Mario or Zelda games it has.
