100% yes. Why? Because then they don't have to worry about competing and losing money in a HW marketplace where they have become redundant. It would allow them to focus on outputting games at a good pace, instead of their lineup being barren for months on end, since they have little 3rd party support. Right now, Nintendo is stuck on trying to have lightening strike twice, so they continue to try different variations on the Wii model, and continue to not see that no one wants that.
And yes, no one. Not even Nintendo fans want it. How do I know? Cause if you listen to what they say BEFORE Nintendo reveals the HW, they talk about lessening the focus on gimmicks and actually competing power-wise, wanting to believe the rumors of a powerful console. Of course, AFTER the reveal, they always think whatever it is is the best and will sell boat loads, regardless of power, 3rd party support, or price. "It's got ZELDA!!" They mainly want them to stay in the HW business out of pride, not because of what they deliver in their consoles.
Now, if Nintendo went 3rd party and, say, released fucking beautiful looking games that took advantage of the PS4, they would get over it REAL quick and purchase those games. No doubt in my mind. Who doesn't want a Mario 64 remake/sequel, Zelda sequel that actually looks like the bogus E3 vid, or a fully 3D Pokemon game, with large fantasy worlds, but can also pull off 1080p 60fps, without freaking jaggies everywhere. Let's be honest, some of those Switch games had aliasing out the ass. And are still only running at 720p/900p.
In truth, Nintendo would greatly benefit from going 3rd party. And I'm sure Sony would love to have such a established developer on board and would give them full support, like they are doing with Kojima. Or hell, if Nintendo wants to be petty, I guess they could just go mobile. That would still benefit them better then trying to compete in a market that is losing interest in their consoles.