I won't call his take stupid unless he really believes it.

The truth is one of the reasons Nintendo software has always been successful has been because they control the hardware. Until this past generation, they never had to break the bank on trying to get development tools because they had the inside track on how to use their hardware along with extra funds from other companies developing on their hardware. This is what makes them one of the most successful publishers and many companies probably have noticed.

I take this as a way to use the media to sway ignorant share holders who don't understand this aspect of Nintendo's business and think that producing half ass games on the new mobile market would equal or surpass the same yield as one Nintendo released on their own devices. Could Nintendo make money, no doubt but as Sega has shown, becoming a 3rd party doesn't equal better sales even with their decent stable of franchises.

Which is better to rule in a pseudo Hell or be a slave in a pseudo Heaven?

I honestly would love this, the only reason I buy Nintendo consoles are for their first party IPs, it's not like I use it for 3rd party games or anything :/