The problem is the foundation of your argument is nintendo is "out of touch."
The switch has been killing it in sales and in reviews. There is no basis supporting they are out of touch. Clearly people are currently happy with Nintendo.
Ultimately most simply don't believe you know how to operate a billion dollar company better than Nintendo does.
Another way to look at it is your claim that a VC channel would help their success. Well the Wii U had an amazing VC channel... and the system tanked. The switch has a meh VC offering and the system is a lights out success. Clearly most people don't care about VC, so you are making the mistake of believing the masses have the same preferences.
I'm saying the VC would make it better, not make it more of a success.
Sure, you think it will make it better, that isn't in question. The question is do you represent the masses or are your feelings niche? Based on Nintendo's direction it appears the answer is "niche."
Also, while paywalls are awful IMHO, keeping games tied to a subscription is going to generate a lot more revenue than selling them once. Same reason Sony dropped free online with the ps4. Subscriptions are the future.