They do care about Nintendo up though.  And at this price point I think they would get on board. Casuals like 2d games and there are a lot of 2d indie games which I think this audience and the Nintendo audience would enjoy.

That could certainly be a way to differentiate but not the main focus. Nintendo still has a shitload of very popular franchises and now with mobile games/apps, amusement park attractions, and potential movies/series, these franchises names will be everywhere and that's better exposure than simply throwing a ton of money into advertising

Also the fact that with this approach, each device gets 100% of Nintendo's output instead of it being split up, this means each device becomes a more compelling purchase, Nintendo is free to create new IP at a faster rate along with bringing back dormant franchises now that they don't have to make 2 separate entries of all their major franchises.

It was pretty weak.  And Nintendo is going to use their ip to drive sales. Comparing this to ouya is a bit crazy. Nintendo would also spend a lot advertising the console.  

Yep, the kickstarter funded device with no exclusive software, no marketing/advertising, that most major retailers never stocked is a very relevant comparison to Nintendo.

never thought about it that way, but in some ways all of these rumored/confirmed deals with universal (rides) and sony/disney(?) (movies) are a way to get really effective advertising that actually pays for itself (and then some, if they're successful).

if they do it right it could well be bigger for them (certainly financially) than the wii/ds were. big if tho.

Yep these things are going to bring in revenue for Nintendo as well so it's pretty much a win-win situation. Another thing I forgot to mention is. The account system/rewards program launching this fall. It's confirmed to be on all devices from Nintendo hardware to smartphones to tablets to PC and Iwata spoke about some potential features like the more games u buy, the cheaper they become or a referral program where u get discounts for referring people to other games.

With such a program I could see something like this. Let's say u download a free-to-play Pokémon spinoff on ur smart device, just for downloading it u get a discount on digital version of the new mainline Pokémon game releasing on Nintendo hardware. Then u go on to send invites to ur friends to play with u, each person that downloads it gets u a further discount. Let's say they do this with pretty much all their mobile games and major  releases, now u have multiple games that u have a sizable discount on which gives u a pretty big incentive to buy Nintendo hardware. This is good for Nintendo and the consumer, I get to save money on games while Nintendo is strengthening their digital front which has a higher profit margin than retail.

Ya, Nintendo is in a very good position to make a lot of profit in the coming years. Between the NX family of devices, Amiibo, mobile games/apps, Quality of Life products/services and IP licensing, they can potentially return to or exceed Wii/DS level profits without selling as much hardware/software.

I think they will use mobile parts similar to the Tegra X1, just made by AMD instead.

BUT, I am getting the feeling that they will have a non-traditional hardware layout, beyond just the shared library. I'm thinking NX is a new form factor/controller type based on how they have described it several times.

It's not simply android games that he's implying will cause NX to sell well. He also mentions to unification of the console & handheld side of Nintendo so that all or most games will be playable on either device. Wii U is a $300 device that only has less than half of the Nintendo games released this generation and very little 3rd party support, in the OP's proposal NX will be a $200 console with 100% of Nintendo's support and solid 3rd party support, that makes it a far more compelling purchase than Wii U.

If the console and handheld shared the same chip then they would be able to get a better price since nvidia or whomever would be selling the chips in bulk.

Ultimately it's about freedom of choice, do u prefer playing in short bursts or on the go? Than get the handheld variant. Do u prefer playing on a big TV or local multiplayer with family/friends? Than get the console variant. Do u prefer certain games one way and certain games the other way? Than get both.

Not everybody simply chooses Nintendo handhelds over consoles just because they prefer handhelds better. The handhelds are usually quite a bit cheaper in terms of hardware &:software while also having a much larger software library. Get rid of those barriers and it now just comes down to what form factor u prefer.