People are fine with paying money for mobile games, but Super Mario Run was bait and switch. It was free to download but you got hit with a $10 paywall after only a few minutes of play. That model isn't going to fly for this market.

Let the 3DS die. Switch shall reign supreme!

So any game with a playable demo is "bait & switch"?

It didn't pretend that.

Everyone who can read could see it in the description, both in the iOS appstore and in Google Play.

Makes perfect sense. Put simple version of games from their franchises on mobile and rake in an extra billion or so dollars a year. Now that Nintendo doesn't have two systems to support simultaneously (with the 3DS fading away soon), it makes sense to throw some resources at a huge market that they have barely touched so far.

Since Switch already has Mario Kart I could see a mobile Mario Kart coming out in the couple years. If they do the incentives right like Pokemon Go (and not Super Mario Run) they could easily rake in many hundreds of millions from a game like that. Mobile might become their new platform for their smaller handheld line of games. Though certainly most resources should be for Switch. But if they say divert 10% of resources for mobile I think that'd be fine.

It doesn't matter really. The general perception was otherwise. People say "Free" on the only listing for it with "in-app purchases" tagged. That's how every F2P game looks so they download it without second thought.

Too red ocean. I doubt it has that much space to grow, in this crowded red ocean.
Also, the model should be rethought. SMR and animal crossing did not performed as well as they intended.
Seems that switch would still be the main product.