They got bit in the arse for trying to follow trends, that's not Nintendo's strong suit. They are trail blazers, not ones that follow the well-trodden path.
They could have scrapped the gamepad, kept the wii controls, and just focused on hardware specs and done very well. People were comfortable and familiar with the Wii enough that the jump in graphics/performance would have convinced most to make the change.
I personally find the gamepad as a waste, but I also come from a perspective of not being a fan of handheld gaming at all. I had a GBA and a DS, and honestly only touched them when I was a passenger in a car or plane. If Nintendo's next system tries to push more handheld nonsense into its next home console, I'm going to stick to Steam as my only gaming platform.

The Carnival of Shadows - Folk Punk from Asbury Park, New Jersey
http://www.thecarnivalofshadows.com
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