For that, they would have to increase their number of IPs and expand the variety of games they do to reach a much wider audience. In other words, do what Sony does but I do not think Nintendo is interested in copying what others do. They are too proud and very confident of their own abilities. And personally I think that's fine. It is good to have an alternative to what Sony and Microsoft do. A console that is not like the others.

Even if it lacked achievements/trophies and proper voice chat but online was much cheaper? 

Neither Sony nor Microsoft. People will buy the console that offers better prices, games and services.

Yes and when has Nintendo done that? It hasn't been able to accomplish that on a home console since the 90s. 

It can but likely it won't. Nintendo likes to do it's own thing and doesn't listen to its fans or gamers in general. It's also possible that nintendo might not be interested in it considering they have the handheld market and that they're still invested in that "hybrid" console.

Only if they can secure third parties early.

Frankly I am at a point where I doubt that if Nintendo had published the PS4 equiv against a Xbox 1 equiv it would have gotten the third parties on board.

Though I do hold that I am not sure a third P/X machine could compete in the market that well.

No. there homes consoles since entering the 3d era, have been all failures, except for the lighting in bottle wii because of the motion control craze.

That is an odd sentiment. So are you saying Switch will not get to 50 million, considering many of its top selling titles are first-party exclusives?

They can release the "most powerful console in the world" and they still won't have good 3rd party support and they'll still be looked as "family friendly". Their best bet is to keep doing what they're doing.

So even after Nintendo completely vindicated themselves with the success of the Switch, against all the odds. Gamers still insist that a hardcore, PS4 clone with Mario games would do better? Okay, sure. Point is, this is the direction Nintendo chose, and it's already proven more successful than any me-too PS4 copycat they could've attempted. You don't have to like it, you just need to accept it.

Also lol, at this.

"But powerfull hardware would allow NINTENDO to make games with "better" graphics, and if they focused more on story and characters than before"

You don't need a monolithic 4k power-box to do those. Nintendo's shown the Switch is more than capable of pulling off impressive visuals, even with lower end hardware. And focus on story and characters? What does power have to do with that? More importantly, what exactly would that accomplish?