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I think there are two things we can derive from Reggie's statements

 

  1. The system was only intended for the 2016 Holiday (where Nintendo has basically nothing)
  2. The reason for the cancellation is to make way for Switch productions (i.e. Priorities). 
Nintendo likely kept making it due to high demand, but they didn't expect it to do so well. As a result, they kept making units to at least appease the massive demand. I also think it's safe to say there will be no SNES Mini. Beyond the fact that it's asinine for Nintendo halt one product to make a similar one, Nintendo made the system only as a temporary gimmick to pad earnings. 

 



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