How much innovation do you need? Whenever I play a new 3D Mario or Zelda I always go "Wow, that's awesome. Never seen that before. What a clever way to use that mechanic" etc... They have lots of unique ideas and innovation. Games like Labo and 1 2 Switch are one trick ponies. I mean where is the next Wii Sports? The Next Nintendogs? The next Wii Fit? The next Brain Age? People don't give a shit about them anymore. What do they give a shit about? Traditional games like Mario and Zelda.
Thing is, they're still making Mario and Zelda...things like Labo will not prevent them from doing so. Nothing wrong with coming out with something quirky to POSSIBLY pique potential customers interest. It's what they did the with the Wii and it printed money for years, DS as well. Heck, Switch is pretty quirky in its own right and doing extremely well and loved by gamers. Nintendo is going to do them, that's what they do and they won't ever apologize for it.