I got an orginal gray fat DS with a copy of Mario 64 DS as a gift way back then. I was very, very unimpressed. Super Mario 64 was THE game that ushered in 3D, and it paired critically with the new N64 controller and its control stick. Moving Mario around a 3D space with that controller was a generation-defining experience.
I took ONE look at the package and was like, what? Mario 64 without a control stick? And this is supposed to be some years-later "upgrade"? I laughed at it and toyed around with the DS version as a joke. I did get a lot of use out of that DS though. It was very good for Castlevania.
For this to be the only re-release of this industry-shattering game is a travesty. Even more bizzaro because of how much Nintendo likes to re-release games.
Perhaps the people at Nintendo are afraid of the classics embarrassing their new work, and keep such games buried in "the vault" for when they need to fire a massive cannon. For example, when 3DS was doing crappy, it got Ocarina of Time. But it wasn't the silver-studded remake the game deserved, just a polished up portable game. At least it had a control stick, for god's sake.
I've wanted a new console version of Mario 64, Ocarina of Time and Star Fox 64 since before I could drive a car. I've moved on and accepted them as historical classics, I still have an N64 because it's still the definitive way to play these titles. The portable stuff they've done doesn't give these games enough credit. On the other hand, if they remade all of these titles correctly, how many people would skip new entries entirely. I mean, Mario Odyssey is a great game, but how good is it compared to a full on Mario 64 remake right next to it on the store shelf...competing with themselves. They would need to be lunatics to pit Star Fox 64 Remake against Star Fox Zero.
This is part of Mario's precise brand management. 64 would ruin their own egos. They can only put out a gimped portable version, out of the limelight.