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There are potential risks with Android ... but at this point what options does Nintendo really have?

The traditional market won't work for them because third parties have washed their hands of the "traditional Nintendo hardware".  And even if they made the bestest traditional systm ever it would still find itself over-crowded and playing by Sony/MS' rules. 

The Wii model only works for them if they could get casuals away from their phones/tablets with some kind of new wacky thing-a-wazoo controller that will change the world. My guess is they don't have that this time. So that's out.

They're down to 7 million 3DS shipments this year and Wii U is a consistent cluster fuck for sales.

I think internally they're making big changes, and for good reason. They can't possibly keep going the way things are now.