they said it is not the time to release a new console while consumers are not satisfied with wii u.

This! I believe you're spot on here. It just makes too much sense. For years they've relied on the traditional handheld and home console 1-2 punch, and it makes sense this will continue in a new form - traditional handheld/home dock hybrid and QoL. 

It'll be interesting to see if/when this scenario plays out.

Wii U is going to look fairly ugly in the end any way you spin it, I don't think there's much that can be done about that. 

Nintendo probably has the following games in developmentment under their financing -- Mario Kart 8, Smash Bros. U, Hyrule Warriors, Pokken Fighters, Bayonetta 2, Xenoblade 2, Fatal Frame U, Yarn Yoshi, probably a few others we don't know about like a Mario Party U. They should take them a while to release all those games anyway, and they will release those games no matter what, even if the Wii U only sells 10 more systems total. 

What's probably happening behind the scenes though is I suspect some projects that might have been on the Wii U otherwise though that are beginning a big part of their development now ... like say an Animal Crossing U or Mario Galaxy 3 ... those games might be transferred to Nintendo's "fusion handheld" platform instead. Better to launch strongly with that than keep investing into a sinking ship. 

We'll see high end tablets that can match Wii U performance, but with the prices Nintendo targets for it's handhelds it's doubtful you'll see such processors in NextDS.

I also doubt that NextDS will be cross-compatible with Wii U because #1 hell will freeze over before they use a PowerPC CPU in a portable, and #2 there's little point to be compatible with a failed platform with few games.

Is it only me who's throwing up every time someone mentions the QoL secret sauce?

It doesn't have to match Wii U performance, it just has to make Wii U ports reasonable. For example it could run the games at 480 or 540p resolution on the road. 

Their next handheld fusion device will probably use a ARM core, but they will probably take steps with the design and dev kits to streamline some aspects of porting from the Wii U if a developer wants to do that. 

Agreed sound wave and that max guy is a troll lol go do something else except bash nintendo

Warned - Kantor

I'd say it's more of a caution flag while they clear the burning debris from the track and the QoL is the safety car.

Exactly. They could have a whole host of new games to run at "TV" resolutions, and just have a low-res version for the handheld. You could buy either (severe discount buying both, not two-for-one, but close). It's all cross-compatible, but you could still get games like Zelda and the next mainline Mario in their full TV glory while still being able to port them easily.

Nintendo's already said they're going to "incorporate Wii U architecture" into their future platforms. I do agree it likely won't be PowerPC, but it's got to be something.

I'll admit this made me chuckle.