Think of it as a larger game pad, except in the style of a tablet, maybe 8", better designed, more elegant,etc. I see alot of people gaming on Ipad mini's and 3d/motion could be built into the tablet itself.

As for the divide, I beleive it exists as well, however as we move towards the digtal download age, I believe that both type of games could still be created (two price tiers as well), but now portable fans would have the option of playing those games onscreen as well. It possibly could work. 

The PSP/Vita were always a large generation behind the PS3/PS4. Besides, the dudebros-centric side of Sony's fanbase will never let go of the 50 inch TV. Nintendo fans are just as happy playing on a 4 inch screen as they are on a big screen, at least in large portions, so there's a pretty big difference. Nintendo's more colorful/easier to follow art styles tend to look great on smaller screens, games that aim for hyper realism tend not to. 

It's just in the past, you *had* to buy a Nintendo console because you couldn't realistically expect to have Mario or Link's next "real" adventure on a handheld. That is something that's already changing quite a bit with the 3DS and will becoming even more pronuced with the next Nintendo handheld. 

Skyward Sword's motion controls are likely gone for the next installment anyway.

There's not many Nintendo IP outside of the Wii Sports ilk that are reliant on motion gaming. Mario/Zelda/DKC/Kirby/Smash/Mario Kart/Pikmin/Metroid work just fine without having to wave the controller around.

Though obviously the 3DS still has the tilt/gyro functionality anyway if you want it.

Well, you have to consider that people will still want that big console epicness that handhelds simply can't offer. Everything likes small(er) on a portable device. Nintendo had Mario Galaxy running on tje 3DS, but Mario looked so tiny that they opted not to port that game over. That says quite a lot about what games works well on handhelds, bit even more so what games doesn't. But I agree that we might see some sort of hybrid console next time around, or at the very least two devices that's a lot more integrated with each other.

Can it iterface with a Wiimote?

Can it wirelessly or via an HDMI out send a video signal to the TV?

If the answers there are yes, sure you could play Wii Sports on it for when "grandpa comes over" or whatever. 

Not that I think Wii Sports is really all that important any more anyway. Yesterday's news. As expected Wii Sports Club isn't doing much for the Wii U. Bowling and Tennis gets old after 6 years. 

Yes actually I think you have a really good point with your hypothesis I agree. Your conception plus the fact that Nintendo really struggles at the home console market and that they have no real chance to compete with Sony and Microsoft in the long run anymore, might lead realistically lead to the point when they only focuse on Handhelds.

If only Nintendo had experience with wirelessly transmitting a video signal ... oh wait ... 

This technology seems expensive. Plus is it justifiable for the next console like Zelda game too look similar to Wii U because Nintendo chose to make an impressive handheld with graphics like the Wii U but not higher? 

The technology isn't that expensive actually. The Vita is already $199.99 and about half way between a Wii and Wii U. It's probably closer to the Wii U honestly. 

By the time a new Nintendo handheld is ready to go, the Vita will be ancient tech, probably in the $129.99 a pop range. 

your prediction seems to be a generation late..