I think you're silly and confused.

Paper Mario is unlikely, i think, unless i'm underestimating Intelligent Systems' manpower. I mean, they just got off Fire Emblem DS, anything new from them is probably a while off.

Though you can never know. My bet is that the mysterious Factor 5 project is actually Star Fox, that Kid Icarus doesn't exist (just like Halo DS didn't exist, right, Matt C?), that Retro Studios has been working on F-Zero, and that the Monster Games project is either a new 1080 or an Excite Bike

i think nintendo was laying off of the first party games in the second quarter of the year because

(A) nintendo didn't need them. they are already selling out of those things. generating more demand for it won't help anything.

(B) third-parties did need it. if they have less competition, then they'll sell more. plus, nintendo get sizable royalties form third-party software sales.

so i think nintendo is trying to give the third-parties that give a crap breathing room.