Well to my understanding they're looking to pump up the graphica and are targeting 1080p/60fps for the Sony/MS/PC fans who are likely to buy the console for this, as well as throwing in as much as they can. They cannot afford to botch this.

Well, Sony came out with a slew of entirely new IPs for the Playstation Vita that don't exist on consoles. Guess what games sold the best? Games from established IPs (mostly from consoles). The massive power gap between the 3DS and the WIi U along with the difference in which games are presented make 3DS games a fair bit different than Wii U games. Games like PIkmin 3 feel much more at-home on a console while games like Pokemon X/Y and The Legend of Zelda: A Link Between Worlds are better adapted to handhelds. This is actually part of the mistake that the PSV makes by aiming to be a "console in your hands" and having games engineered to be presented as such. The Wii U's problems lie elsewhere: in the system's design, older architecture (not x86), lacking multiple features, etc. if there are any problems with how they allocate their games, it's that they have a number of handles/console entries that are too similar (SM3DL + SM3DW, MK7 + MK8, Smash for 3DS and Wii U): games that do not demonstrate NIntendo's ability to optimize the design of their games for handhelds and consoles separately.

What is that from?! I laughed my..... Ass off.. Lol, Reggie does tend to speak out of that reggion.. But again, what is that from? Haha, too funny, and very fitting.

Yeah, I couldn't even hope to find such a picture when I was looking for a fitting one!   
At first I thought it was from "Naked Lunch", but then I found it's from "Society"
http://www.imdb.com/title/tt0098354/

Your understanding is wrong, Mario Kart runs in 720p like pretty much every other Nintendo Wii U game except for Wind Waker HD. 

Unfortunately Reggie doesn't have control over these things. If he did then I think Nintendo would be much better off.

I remember reading that it was going to be 1080p somewhere but it seems like that has changed. 60fps is confirmed though and 1080p might still be possible considering how much time they're spending on it. My point is that the game is supposed to be very visually impressive for the platform, as is almost always the case for big EAD-developed games. That aside, they're probably still trying to add more features and characters to the game, as they just recently added all 7 koopalings.

I don't understand why people are demanding that they rush themselves on first-party games when the average rate of first-party ouput on other platforms are quite similar. I know that those platforms have much better third-party support, but it's not as if that has any impact upon devlopment time. People didn't complain that much when PS4 only had two launch exclusives (which weren't even that good) and Driveclub got delayed. They aren't complaining much about Halo 5 or Uncharted 4 not coming sooner.

BTW: Rayman Legends and Monster Hunter 3 Ultimate run at 1080p.

To be honest, i can't think of any other company that could make so many games by itselft every year.
When you look at both 3 DS+ Wii U, 2013 had a pretty good amount of games, most of them being very good.

But without thirds, not even them can keep a good momentum.

Making their games 1080p/60fps is going to do very little to attract the hardware junkies. They know full well the WiiU is underpowered in comparison to the other consoles. This wouldn't change their minds. 

I'm not saying that doing 1080p/60fps on all their games would help them. Just the ones that appeal outside of their core fanbase the most. Games from franchises like Mario Kart, Smash Bros. and Zelda have always helped to push hardware regardless of the system they're selling on. 1080p/60fps obviously isn't going to change the minds of those who are not interested in buying the system in the first place (hardware junkies or not). My point is that the better the game looks (and plays), the more the people who are on the fence about getting a system will decide to get one.