I'd have called it the New Nintendo Entertainment System (New Nintendo Famicom in Asia). Or something like Nintendo Neo. Simple. Wii brand would spun off into its own fitness/lifestyle brand, something separate. Console would look bad ass with subtle but cool LED lighting.
I'd have gone with a customized 4850 GPU (AMD) shrunk down to the 40nm level and a decently powerful CPU. No Wii backwards compatibility. 4GB RAM.
Upgradable system architecture. (simple like sliding in a battery or like the N64 RAM Pak).
No standard tablet controller, but I'd have it as an optional accessorie with Nintendo Land bundled for $99.99.
$399.99 launch MSRP, November 2012.
I'd have invested some cash in securing more 2nd party exclusives upfront. Nintendo was cash rich circa 2008, there's no reason to release a console that's starved for software. I'd make sure there was AAA Western developed killer app ready for launch day 1. Maybe a Zelda spin-off. And I'd also push the NSMB to make a more imaginative, awespiring Mario platformer with better graphics, music, etc.
I'd purchase the rights to the James Bond franchise from Activision and make Bond the "Mario" for older players.
