During the N64 era, Nintendo fans could fall back on tech to comfort themselves. Games worth buying may have only come once ever 4 months, but they were great games that looked better than any meaningfully competing dedicated video game platform at the time.
During the GCN era, Nintendo fans could sort of fall back on tech. Xbox was more powerful, but both were significantly over PS2 in terms of power. Sales weren't great, but most mid-tier and below third-party titles still came to the system.
During a lot of the Wii era, Nintendo fans could fall back on sales and pointer controls as really being above the competition. There was junky motion stuff to down everything, though, and third-party support was nearly non-existant. Nintendo itself was generally doing great, though, which was some comfort.
Wii U is looking like Nintendo fans will have nothing to fall back on except Nintendo games, and Nintendo is having major problems getting those done, too.
I think it was Stumpokapow (or Nirolak) who postulated that the video game consumers were mostly getting silo'd into Nintendo and everyone else last gen with very little crossover. Wii U seems to make that divide stand out even more.
UE4Lite may end up being ported to Wii U down the road when it's on mobile phones, and someone may bring that up with Rein and point him back to this GDC, and he'll go "Oh, yeah, UE is very flexible." Doesn't change the fact that his, and most everyone in the audience's, first reaction was to laugh at even the possibility of Wii U being able to run UE4, which speaks volumes about how Wii U is perceived in the industry way more than any retconned PR "correction."
"Nintendo is dead to 3rd parties." Doesn't seem to unreasonable a position to hold for most of the industry, at this point.