I agree with the bolded bit. More importantly I agree with the you when you said Nintendo games make the system unique. That is why i cannot figure out why they don't expand their studios to make more games. Third-parties can be unreliable so being self-sufficient is vital.

As for the rest of your post I don't agree. 3rd party want power, not lower res. The GC was in many ways another xbox and PS, that didn't work.

You getting to play nintendo games is indeed good for you, but crap for Nintendo if very few people buy the system.  Making a cheaper lower res console at a lower price to compete with the more powerful xbox and PS would appeal to you but not the wider market.

Without a successful gimmick like the wiimote that console offers nothing but Nintendo games. And right now Nintendo games aren't setiing the world alight on the Wii U.

Nintendo is always trying to keep things affordable. I can't see them going for $400 or $500 console, and if they do people might not trust that third party support will be coming. No initials means no third party support. You'd be surprised at how many people don't mind a cheaper console that does 900p instead of 1080p, and it plays Nintendo games!

Third parties follow the sales, and people go for the best value.

Games that 'break the formula' (that also applies to Sony, MS and pretty much any developer)..for example, the game that made Nintendo a powerhouse when they started with the NES, 2D Mario.Remember how each iteration introduced lots of different things.Mario 2 is very different from the original Mario Bros, Mario 3 introduced a world map, Bowser kids, etc...Mario World, while playing it safer, introduced Yoshi and ghost houses...and each one also introduced lots of different music.Now, what do they do with the NSMB series?...they recycle lots of things, there's no 'soul', no 'magic' like the NES/SNES games had.