Nintendo specifically talked about a flexible pricing model where players are rewarded for buying more games per year with higher discounts the more you buy.

And cross buy is not a reward. Don't expect that here.

Cross-buy is hard for Nintendo to pull off right now, given the hardware differences between Wii U and 3DS. This does get me thinking though... What if Nintendo announces some sort of docking station or other peripheral that would allow you to connect your 3DS to your Wii U and play 3DS games on your TV? They've done it twice before that I can think of with the Super Gameboy and the GBA addon for the GCN. Maybe do it via NFC(if thats possible) to help sell both the New 3DS and the Wii U.

Don't expect it. A subscription model isn't happening. Nintendo has already gone into some detail as to what this new program is, and it contradicts a paid for service. It will be more akin to the Digital Deluxe Program.

Instead of paying a yearly fee for scheduled deals, you're rewarded, as one of the conditions, for how many games you buy a year. The more games you buy in that yearly period, the higher your discount percentage is for, what I assume to be, all eshop games. The program will likely be applicable accross both the 3DS and Wii U, so it would be quite easy to rack up discounts if you regularly buy games between the two.

There would probably be a discount ceiling of about 33% percent, after which the price wouldn't drop any lower. So full retail $60 game could reach prices as low as $40. This works for Nintendo though, because in order to get those discounts, you'll have to have already spent a lot of money on their products to reach that discount. One you hit the 33% ceiling, you're much more likely to buy a lot of more software, meaning more games have more mind share, meaning those games are more likely to be discovered and purchased by others, getting them another step closer to the next discount, etc.

Nintendo also talked about recommendations. You might get points towards discounts or free games through recommendations. They talked about gifting game demos of games you own to friends. There's plenty they are much more likely to do, based off what they've been saying, that are not paid subscriptions.

I didn't say subcription, but it may happen now. It most likely will happen with the next console.  But right now they need to move a simple model that is accessed easily every time you boot up your console.  I've never bothered with Club Nintendo.  But every time I turn on my new One I see games with gold promotions and deals that I can get as a subscriber.  Free game today?  Cool!  Nintendo needs something that is easy/near mandatory to use with Wii U's and handhelds.  Everytime you turn it on, you're logged in and your rewards or available prizes/offers are right there.  This will help lead toward the better customer retention that Gold/PS+ creates.  Nintendo is built toward having this better than any other console maker, but they have grossly failed.

Right now they should have (and I expect them to have if they are smart - which is debatable) a service which provides discounts or free games to your NNID.  Buy Super Mario Galaxy 3, get SMB and SM64 on VC for free.  Buy Zelda U?  Get discount on WWHD digital download half off.  Stuff like that but easy to use and automatic from your ID.

Then next gen they can create a subscription model where you get free downloads as part of your annual fee using the infrastructure created here.

See, everything works until you say subscription. The model I describe. AND the model you describe is much better than both PS+ and Gold, without paying a yearly subcription. A subscription goes against their whole company philosophy, and everything they've said on the subject.

"Right now they should have (and I expect them to have if they are smart - which is debatable) a service which provides discounts or free games to your NNID.  Buy Super Mario Galaxy 3, get SMB and SM64 on VC for free.  Buy Zelda U?  Get discount on WWHD digital download half off.  Stuff like that but easy to use and automatic from your ID. "

THAT is more in line with what they have been saying. The rewards system they've described is meant to reward players who purchase software at full price. We already saw this with Mario Kart 8. Buy MK8, get a full retail game for free. We saw it with the SMT x Fire Emblem promotion. Buy both Shin Megami Tensei IV and Fire Emblem: Awakening to recieve $30 in eshop credit. Buy both Smash Bros versions, get free Mewtwo DLC. (And a CD)

Instead of being accessable to everyone who pays a subscription, it's accessable to everyone with club nintendo, a free program.  It gets more people to pay full price for more software, so that they can earn discounts and free stuff for others. That is what they want to do. Sell more software at full price. Buy more games? Get more stuff. A subscription will and can never do that for them.

A subscription model is meant to provide a service to a paying customer. It's the opposite of a rewards program and clearly the opposite of what they are ever going to do.