Fair point, but to be fair, Nintendo oversaturated the market with a 2D Mario game mere months before the Wii U version. It was a stupid move.
One of many.
-Nintendo mistook NSMB sales on the Wii for massive growth in the franchise; when the reality is that the large installed base built up by motion control simply contained a conducive audience within it for games like NSMB, Mario Kart. They're making the same mistake with banking on Mario Kart, 3D Mario, etc. I think - but hey, maybe they'll prove me wrong.
-Nintendo thought this, coupled with a novelty touchscreen (which, in 2012, no one really considers a novelty) and Nintendo Land as their spiritual Wii Sports successor would be sufficient to sell the system to the expanded audience they had on the Wii.
-They did this after letting the Wii languish on the market for years, as they tried to come to terms with HD development (and apparently still haven't.
-They did this in lieu of a more significant jump in hardware power, leaving them with a system of comparable (yes, it's more powerful, whatever, it's still comparable) performance to the PS3 and 360. To their credit, getting such performance in a low power, low profile form is an engineering feat - but it came at a cost.
-Lightning hasn't struck twice. The Gamepad is no Wii Mote. Nintendo are now left with a nominally new system, which looks similar in performance to systems on the market for 7 years, but with far less software and far less software coming, and at a price premium. In other words, a system with absolutely no incentive for someone who has owned a PS3 or 360 for a long time to upgrade.
This is all without mentioning problems with third parties.
It's not just the name, it's not just the marketing, it's not just the sparsity of software. At its core the product is somewhat flawed for the market.