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I think they should have, yes.

Because then they would guarantee consumer trust for the next cycle. This way they lost it, so it will be interesting to see how it will affect early adopter sales of the the NX.

And to be honest, it would be best to tackle the next generation in equal conditions to it's rivals. It would be a good timing to catch up with them in terms of power and regain third party support for a full generation (by launching their new system at the same time as the others while having gained great consumer trust that Nintendo won't abandon it, much like Sony with the PS3). Mid-generation systems never work.

If anything maybe they should have released a mid-gen upgrade like the others have.