Who exactly is this controller supposed to appeal to, anyway?
The core crowd won't touch it with a ten foot pole. The casual crowd aren't interested, as the Wii U already demonstrated.
People always say "oh, Nintendo fans will get it no matter what", but many Nintendo fans who've stuck with the company for decades are expressing disgust at this design. And it's not like the Nintendo crowd alone are enough to carry a system, again, as Wii U already demonstrated.
Not to mention that the idea that Nintendo fans will put up with anything fails to take into account the countless fans they have lost over the years as a result of moves like this. Even the most dedicated fans eventually reach a point where they simply refuse to take any more crap.
Like the Wii U, the only gamers this will entice are a continually shrinking group of Nintendo diehards.
Again, all this is assuming the leak is legit.