Shareholders are just a bunch of prunes in suits who don't give a shit about gamers, and no, Nintendo doesn't know what they're doing. If they did know what they're doing then we'd have Virtual Console on Switch instead of a substandard subscription system with an increasingly lackluster catalogue. Seriously, Switch Online went from the Donkey Kong Country trilogy to Jelly Boy, and without Earthbound or Super Mario RPG, which is brings the conclusion that they're out of touch.
Actually, I'm a shareholder and far from being rich or a 'prune in suits' I'm pretty average guy. I've sunk a decent portion of my savings into Nintendo because I have faith in their ability to turn a profit and give me a return on my investment. You're really confusing your own wants for what is good business sense. Let's say the licensing and other problems in adding Super Mario RPG as part of a low-cost service costs far more than they can reasonably expect to get as a return. Given SquareEnix's stance on the game in the past, and its continued absence currently, that appears to be the case. Nintendo is making the right decision for me as a shareholder to not waste money satisfying a niche portion of their fanbase for no expected return.
Now, this isn't to say that everything they do is correct. I think they should reinstate the VC and keep a rotating list of games from a variety of their consoles on the Switch Online rather than have a permanent list from almost everything from 2 consoles. But I can see how both of those benefit the company by driving further profit and the customer by giving them more options.