One that coexisted with the Wii U? One that could run modern PC games?

This PS4-XB1 era I think we can agree is probably going to last 5-7 years. So 2 years from now will still be relatively early into this generation. 

Since both the PS4/XB1 seem to have problems running even current PC games at 1080p, this gap is going to only get worse as better PC cards come out. Perhaps Nintendo can capitalize on both Sony/MS' relatively underpowered hardware. 

Something that has a 20nm 3 TFLOP AMD GPU + 16GB of RAM. As in it soundly beats the snot out of a PS4 and crushes the XB1. Should be feasible in a couple of years. Nothing fancy otherwise, comes with a regular controller, but is compatible with all Wii/Wii U controllers as well, $300 or so. Lets call it the New Nintendo Entertainment System. 

1.) It can run Wii U games, but newer Wii U titles can come specially programmed to take advantage of the new chip and run in 1080p full HD with anti-aliasing or perhaps even 2K/4K resolution. 4K displays should be more common in 2 years time, imagine playing Super Smash Bros. in 2K or 4K resolution. Crystal clear. 

2.) It can run slightly modified PC games as it has a PC GPU (AMD). A third party can easily transfer their games (say Battlefield 5 or GTA VI) with little or no work, but they do have to pay Nintendo a licensing fee to get it on the platform. So Nintendo is suddenly getting licensing fee revenue for games they weren't previously. Win-win. 

The original Wii U would be more of a budget platform by this time (sub $200). This new platform would be for the Western market and Western gamer. 

Basically I'm thinking it would be like a "Steambox", just one made/controlled by Nintendo that also runs Wii U software ... so it can run all PC games (with Nintendo getting their licensing fee per title of course), which means a ton of third party support + Wii U games in higher resolution. 

There would be a ton of QQ from peeps who went out and bought a wiiu. I doubt they would do that, I would be for it but I think they will ride it out like the gamecube.

Seems like everything you post about Nintendo is a bad idea that would ruin their rep and kill consumer confidence in them.
I've yet to see any idea from you that was valid or a good business decision in any way
Wii U will be just fine. Looking at PS4X1 games atm, even they cant compete with PC so I don't see why Nintendo needs to. Games will get better looking as developers learn the console so it is not like what we see now is the limits of what it can do.

The Wii U would still be getting games though and would have 4 holiday seasons worth of support by then (2012/2013/2014/2015). 

Because I don't think Nintendo themselves really has a lot of interest in making their own games with a 3 TFLOP powerhouse chip, they could make say Super Mario Galaxy 3 for 2016 ... runs fine on the Wii U, but the New NES version could run lets say in 4K resolution. 

That might be interesting. So for Nintendo devs and consumers the benefit is getting games in resolutions higher than 720P. For third party devs the benefit is being able to simply transfer over their PC games relatively easily. 

1. The PS4/X1 cycle will last most likely (6-) 7 years.
2. Nintendo already talked about making shorter console cycles, but 3 years is too short. They should make it 5 years, which is most likely the point where the developers took the best out of the console.
3. It all depends on the hardware sales of the WiiU though. Is the WiiU the flop through out its lifetime, then it is likely to see a new console pretty early. We might see a new CEO quite soon as well, so depending on the person, this could be influenced as well-

But still: 3 years lifetime is too low. Nintendo would hurt their loyal fanbase a lot, that's why they have to go for 4-5 years even in worst case scenarios.

The 4Bone would be 15+ million ahead, and suddenly graphics and power won't matter anymore, and 3rd parties would just switch to the "Nintendo gamers don't buy 3rd part games" crap, WiiU owners would feel betrayed and just abandon Nintendo, Nintendo would be making the same mistake as SEGA. No just No.

because dropping the original xbox after 4 years worked out so terribly for microsoft?  

Honestly if the Wii U continues on the way it is, or is negatively impacted by the new systems, I don't see how launching a new console a year sooner than usual would really hurt Nintendo in the long run.  It would probably be much better for their bottom line.

However, I would probably be ticked since I have a wii u, but I would move on an buy their new system I am sure.  

It's the same life span the Game Boy Advance got, that didn't hurt Nintendo with the DS. Try not to think of this as a console that "replaces" the Wii U. Wii U would still be there and still be getting the same games it would otherwise, Nintendo would simply have a different option to target people who don't want a Wii U because it's not giving them the Western third party content they want and doesn't measure up to the PS4/XB1. 

Just dropping support for the Wii U entirely would be unneccessary it could still be supported through 2016 or 2017. 

This would only make sense if 2013 is the Wii U's pinnacle.

Nintendo's having a hard time with HD development and you're already talking about 4K and supporting 2 consoles. They don't have enough bandwith.