i'd say Metroid Prime and DKCR are better than PD and DKC

Agree with seiya on all these points. Sure, Nintendo could make some different business decisions, resurrect some dusty IPs, experiment with different genres, etc. But, honestly, Disney seems like the wrong role-model. Yes, Disney has expanded in recent years, but it's done so in very predictable, conservative ways. Snatching up Marvel and LucasFilm weren't strokes of creative genius; they were calculated and safe bets. The year before the Marvel acquisition, Iron Man brought in over $300 million. And LucasFilm owns Star Wars, for goodness sake.

Plus Disney has an unfortunate history of sanitizing its products, surely something you don't want based on the OP.

Nintendo already has a new "Rare"... Its name is Retro. They have also worked with several Western developers in the past gen, like Monster Games, Next Level Games and Kuju Entertainment, and continue to do so. While their focus is indeed in Japan (which I personally appreciate, specially in our current gaming industry), they've always being open to collaborate with Western developers/publishers. ZombiU and Lego City Undercover (this latter one published by Nintendo) are also evidence of this (which aren't currently "saving" WiiU anyway...).

That aside, I don't see how working with Western developers guarantees more success than working with Japanese ones. You're certainly not going to buy an "AAA" multiplatform game to turn it into an exclusive, so which games/developers are we talking about here ? Furthermore, would a few Western exclusives from acclaimed developers be enough to attract a considerable audience in a market that's pretty much saturated with them ? On a platform that is less powerful, no less ? And why not just expand Retro or NST instead, or create a new developer ?

Sure, Bayonetta 2 is not "the answer", but it was never meant to be. It's a sequel to a critically acclaimed game targeted at a relatively big niche, which has little alternatives in the market. It's also an opportunity that Nintendo ceased, not something planned as part of a big strategy. The idea, I presume, is to attract fans of this niche and others like JRPGs (X and SMTxFE) to offer variety in genres (on top of Nintendo's traditional offerings) that aren't currently being the focus of Sony and Microsoft, nor even much available from 3rd parties. I think this is a better idea than trying to compete directly with Sony/Microsoft for the same audience.

Finally, I believe you're giving Rare too much credit... Nintendo's most popular home consoles didn't have them as 2nd party (NES and Wii), nor were they there much on any of their handhelds. They were important of course, but not something that kept Nintendo "on top", in my opinion.