He was talking about doing a price cut too early in a console's life cycle...

Regardless of the cost of development the system itself is still in such a demand that they can't produce enough of them, that gives them 3 reasons not to lower the price.

1. Supply and Demand
2. Bad impression
3. Value hasn't been deemed in decline

What Iwata is talking about is the 3rd, the value of the Wii hasn't dropped.

ie. In the case of the PS3 regardless of it's technichal value (Being all the components placed together for face value) the market regardless of being aware of what it was didn't deem it worth that price.

Profit is the goal, but there really is no reason to lower the price point.

In the same passage of the interview Iwata also said that

a) the cost estimates that he read out there were not really acurate and
b) the chips inside the Wii are already quite cheap, and the prices of the other parts don't come down that quickly.

So please don't talk like it's a given that Nintendo has huge margins on the Wii.