With Nintendo's library, I think the sweet spot would have been a console with a cheaper price, which could have been reached by ditching the game-pad.

For Nintendo to go head-to-head with the PS4 or XO, they'd have to improve a bunch of other areas of their service. Generally speaking, they get away with those differences because they're usually the cheaper option. If they're the same price, though, those problem areas become major points of comparison.

Basically, Nintendo would have a LOT of catching up to do to compete directly with Sony and Microsoft. I don't see them burning through the money it would take to do that in a quick fashion. Better they aim for a different niche.

I think they would be a pretty comfortable no.2 this gen with 40-50 million consoles sold if they had done this:

800 GFLOP console + Wiimote + Pro Controller shell (cheap) = $249.99 today ($299.99 launch) and been willing to work with more Western 2nd party partners. 

MS is not looking strong this gen at all, Nintendo missed their oppurtunity to take advantage. 

Classic? Wii U is quite possibly the most pureblood game console of the three. :P
High end? Depends. Can I get it for $250?

Dump the dated PowerPC architecture, the 33 watt power requirement, and the silly $100 controller and sure ... Nintendo could've delivered a system powerful enough to run most next-gen games at 720p anyway for a low cost. 

Good. Bundle that with a Pro Controler, Wii Remote Plus, Nunchuck, and Wii Sports HD for $299 and it might actually work.

Gamepad >>>>>>>>>>>>>

3rd parties would never support it.

They cant find out how to sell games on them. Why? Cause the first party offering is too strong.

Gamepad = driving Nintendo to the worst selling Nintendo console in history. 

It's not like Mario 3D World, Bayonetta 2, Pikmin 3, Mario Kart 8, NSMBU, wouldn't work just fine without it. 

it could be seeling worst than Virtual Boy, still Gamepad is the best controller out there.

Nintendo would have to market more towards teenagers/adults to give the system credibility with older consumers. Preferably too Nintendo should take the lead and create a franchise for themselves that is of AAA quality and highly marketable for the older audience. 

Then third parties will fall in line. They're not going to waste their time on a console heavily skewed towards young kids or soccer moms when most/all their big franchises are aimed at teenagers/adults. 

The N64 had a *ton* of first person shooters? Why? Because GoldenEye was a huge success on the platform. Third parties look at whats selling on a console, you can't just crap out a console and say "OK, make games for us now" when you have no sense of demographics. 

Nintendo needs to stop playing the victim card ... they had every oppurtunity to do things right this gen with minimal investment but continue to treat the market like its 1991 still. I mean heck they didn't even have to do everything right this game ... they could've still probably finished an easy second place looking at the mistakes MS has made, but Nintendo just chose to take it to another level of stupidity with market alienating choice after choice.