Well, I don't argue that Nintendo should stop making HW; I've even made a thread about how Nintendo would fail as a 3rd party publisher. But very interesting read!

No, because Fusion leaked specs would be a high end console with a high end portable. It would be more expensive to manufacture than a PS4 and a PS Vita (normal model, with screen). That would be insane.

Personally I think Nintendo should be able to do these kind of sollutions immediately on both 3DS and WiiU.
Advertise it, both traditional ads and smartphone app ads and also emphasize that you get a lot of content right out of the box when buying the hardware.
It could be done the same way Zen Pinball has done it. A free download offering a "lobby" where you see all the DLC you can buy. Make it for WarioWare, Mario Party, Brain Age, Nintendogs and others.
The software already exists it is only the presentation that will be new.
I own Game & Wario but I would love to have a shortcut to the Pictionary game in it ( Family favourite)

How about remote play with PS vita, could this be done with a simple cheap handheld?

Then the "main unit" could display HD visuals on the TV, and the simple device double as contoller when at the TV and when leaving home as a handheld with lower resolution streaming gaming device.

Possible? 

I have yet to see a publisher that works in the dedicated gaming market find parallel success with the mobile phone/tablet. Furthermore with a linked strategy such as this. It seems redundant, something Nintendo really has to be careful of now and moving forward since they are going to be the main software providers for their platforms. I think the mobile market is a lost cause and a bubble waiting to burst, but that is purely my opinion.

In a normal circumstance it would be a joke but this one was a reference. There was an investor that said the exact same thing, Mario should go mobile and should charge for "jumping higher" he sounded like it was it's wet dream.

So what would happen if Nintendo decided to put Brain Age in smartphones? Investors would keep pestering them to release Mario on smartphones too. You can't just send Brain Age and Nintendogs to smartphones without expecting investors to demand Mario on it too. Imagine if those two where successful, the logical thing to do then would be to start sending Donkey Kong, Mario, Zelda to smartphones. There is no way out once you start, it's like a drug, ask Square Enix.

A lot of Nintendos franchises are smartphone friendly. Just think about Game & Watch, these are "endless" games, often starring Mario, that could get enhanced with microtransactions or in-app-ads.

Mario CAN exist on smartphones in his 8-bit and 16-bit form simultaneous as HD-Mario runs around on the WiiU.

Yes, a lot of them are smartphone friendly but that doesn't mean Nintendo should do it. If you send Mario on smartphones it won't be long before they have to send Zelda to smartphones. I think it could be detrimental to those franchises. Why would I buy a Wii U if I can have Mario and other Nintendo franchises free on my smartphone?

Can't wait to pay for those $1/Jump Mario games

I mean, I don't understand why people say Nintendo should go mobile cause the 3ds isn't doing as good as the DS but doesn't say that Sony should go mobile cause the Vita is doing horrible compared to the DS and PSP... Biased at its best

The 3ds is over 30 million sales ahead of the Vita, if any Company should go mobile, its Sony if we are ignoring the home console market

I have to admit that I haven't played A LOT of mobile games, and certainly not from any of the "traditional" game publishers, but from what I DO have played, and from what I've read, they are doing it wrong. I've tried to play Sonic on my smartphone, but that sucked ass. I've seen the catastrophic reviews of Final Fantasy on smartphones. I'm saying that Nintendo SHOULDN'T do any of those type of games. I'm saying, take a franchise that works very well with touch controls, a franchise that doesn't do very well on the existing Nintendo consoles, and put them on mobiles so that you can go after a different kind of audience; those that doesn't play on dedicated gaming HW. The thing with the mobile gaming market bubble is, that it's been around for 7 years now, and is still doing great numbers (Candy Crush is making 800k A DAY).