^^^Mods =/= UGC as basis of game itself.
Malstrom is going nuts. He just likes attention. There is some basis to what he's saying, that Nintendo needs to focus more on making new content instead of rehashing key series with somewhat differing mechanics. But Miyamoto is a guy who has made new content-oriented games like Pikmin and Nintendogs in the last decade. And the guy behind Wii Sports and Wii Fit. He's the most influential developer of 3 consecutive decades, and a couple years pursuing a false ideal doesn't mean much compared with what he could be doing in 5 or 10 years.
What's more, Miyamoto is a guy who will let an idea sit on the back burner for 15 or 20 years... Notably Miis and multi-player Mario. Iwata stills sets the direction of the company, and I think there has clearly been a change in direction from the Wii Music/City Folk disaster that led to Wii's low 2009 sales, and now focusing on NSMBW as the holiday killer app. Malstrom may be right and Miyamoto never makes a UGC-focused game that works in the marketplace, but he will have plenty of awesome ideas and new games in the meantime.
"[Our former customers] are unable to find software which they WANT to play."
"The way to solve this problem lies in how to communicate what kind of games [they CAN play]."
Satoru Iwata, Nintendo President. Only slightly paraphrased.