Let's be honest, they aren't. Reasons:

1. They have absolutely no idea who they're catering to. They are beginning to dip their toes in 'mature waters' but still are obessed with the family audience that doesn't exist anymore. Proof of this is in their E3 this year where they intentionally left out games like Fatal Frame and Devil Third because it wouldn't fit with their kiddy puppet show leaving older Nintendo fans hanging.

2. They're cheap when it comes to hardware. Their main excuse for this is they use every ounce of power in their systems, which is true but really doesn't mean much if your system can't handle modern third party games.

3. Speaking of third parties reminds me of how awful their relationship with them are. They still have their old mentality from back in the day when they were king and saved the industry from crashing. Yamauchi who taught people in Nintendo like Iwata what they know openly said that third parties don't matter. Even developers came out and said that they knew little to nothing about the Wii U when it was being made and had little input, the opposite of what Sony and Microsoft did when developing their systems.

4. They're lost when it comes to HD development. This is probably one of the worst factors. This is the main reason why we had so many delays on the Wii U. They were a generation late when it came to HD development and are still struggling to this day.

5. They refuse to compete directly with their competitors. They say their competitors are doing the same thing and they're pushing creativity and doing their own thing when in reality I think they're just scared to step up to Sony and Microsoft since it's harsh competition. MS makes a robust online system, Sony steps up and create their own. Sony is pushing creative new IPs, MS does the same. I don't think Nintendo is ready that yet.

All in all I think they should ride out the Wii U completely until they fix these problems because if they don't and make all these mistakes with NX then they are pretty much permanently screwed on the console scene. Thoughts?

Agreed.
That's why NX is going to flop if will release in 2016. (well, at least not at WIU level... )

Agreed.

I know its beating a dead horse... but going 3rd party would literally solve every single one of their problems

Agreed and with iwata in charge, things will be the same.

I just wanna play my games with a normal controller like we've been doing for the last 30 years. Nintendo stop reinventing the wheel!

#1 is presumptuous since we don't really know why those games weren't shown.

At this point, does it really matter? after all that has happened these years it is now proven that they won't change, they are determined to take it to the last consequences and nothing anyone , be fans, developers or competition, say or do will change their minds so why should we even care at this point? I'll just keep playing the games i like like i've always done wether they happen to be on nintendo systems or not, only wish i had infinite money so i didn't have to pick, but nothing i can do on that front either

Unless Nintendo can pull some miracles, and assuming Nintendo doesn't fix their mentality, NX is looking to be a flop.

Yet they still make the best games, go figure.

What's miracle?

They just muat make a powerful console at good price, with a good marketing, and not only a good marketing for the console and the exclusives (Mario; Zelda ecc), but even for the Third Party games, a exclusive Marketing / bundle for some games with Ubisoft / ActiVision, and the end.

NX to sell +50m lifetime easy.

Is not hard... I just hope Nintendo will do this.