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I don't think that is the reason the Wii U failed. Granted, if the price point was even more powerful hardware would help. Third party support died because of a lack of sales.

The problem with the Wii U was the games mainly. What games really used the Gamepad well? What games were really designed for the casual owner that made the Wii U a success? A slightly improved Wii Fit? A more expensive Wii Sports that just added online?

What was there to appeal to anyone outside Nintendo's usual? Which games really brought something new to their franchise? What new franchises were built? Splatoon, and little else (aside from poor overlooked wonderful 101). Why would someone not already firmly in Nintendo's grasp want this thing?

Add to this confusing marketing. A lot of people (dumb people but still) thought the system was an add on for the Wii. A lot of people simply didn't know there was a new console.

As a Nintendo fan, I've had a lot of fun with the Wii U. But I can't really recommend it to people that haven't enjoyed Nintendo's offerings in the past. There's no game (aside from maybe Splatoon) that would really change their mind, and no games to keep the casual gamers involved. A lot of the Wii U's failure had to do with the software and not just that the Wii U wasn't a "proper" system.