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On the one hand; if they stopped making hardware, their software/hardware synergy would not be the same and the games could suffer as a consequence. On the other hand; the last Nintendo console I owned was the N64, so their hardware hasn't exactly blown me away and their software hasn't been compelling enough on its own to make me buy their consoles anyway.
As of the Wii and on towards today; they lost me completely with their direction and I feel like they haven't even made an effort lately, even with their software.

I guess I would both mind and don't mind, but I suppose it would be best for the industry if they remained more independent, gathering all software releases under major conglomerates is not healthy for neither end users nor developers, in the end.