The problem with your argument is that the Wii U is a very special case, as Nintendo has been in their most difficult situation in a very, VERY long time.
For the past three years in a row Nintendo has lost money in their core business. Since 1980 (when Nintendo entered the worldwide video game industry), they've been able to make their business profitable every single year...except for the past three years.
Every Nintendo console generation has seen profits for the company...except this one. For that reason, we won't see Iwata treating the Wii U like any other Nintendo console. Many people fully except the lifecycle of the Wii U to be cut short to some degree.
The Wii U itself as a machine is not the problem. It's the operating system policy and lack of integrated features (all which could be fixed with a competent team in less than 8 months, using the same overall "channel structure"). The machine's specs are also not the problem, it's more than capable of delivering excellent groundbreaking experiences that are modern and fresh. It's not the name even that needs to change.
It's the vision that needs to change along with the marketing of that vision, support for that vision through a radical restructuring of the core-OS and multitasking features. A vast or total elimination of MiiVerse into something more fresh, modern and palatable to wow the public at large. Think of a interactive Facebook/Gamertag/Forum all rolled into one is a excellent example of something "gamers in 2014" could appreciate. Not a bunch of "unyeahs" and dumb Mii's cackling around. And it need of course a unified account system as well as cross platform play I'd argue (3DS and Wii U are EXACTLY the same idea essentially). And it needs to be marketed towards the and I hate the meme "hardcore gamer". And that brings us to the third pillar.
Games. It needs new ideas, better ideas that appeal to western audiences rather than the stale Mario nostalgia. And it needs every single one that Nintendo can muster, hence my suggestion to abandon the 3DS to a large degree, if not entirely. This means you Greenlight anything Retro wants to fucking do, period. This means you create new studios with talent vetted from genres Nintendo isn't known for (fighting games, FPS, racing sims, etc) and make them all Nintendo exclusive. All Nintendo needs is 2-3 big hitters, that can be platforms to future sequels that will continue that sales trajectory. Who knows what it will be, but that's all that's needed really.
Nintendo had that with the Wii, Wii Sports/Fit/etc. But of course that was a short term one hit wonder deal, the smarter long game would to have been cultivate a hardcore IP of that selling nature and push that drug. That's what they need to do right now, find the hit that works and build off that success. The Wii U might end up being Nintendo's weakest selling console, but if I can say anything good about Nintendo is that they somehow always seem to find a way to weather the storm and find that "hit", that sweet spot that helps the console survive. If their partnership with Platinum continues to gain traction, that could prove to be a catalyst for "something". Maybe a NintendoxPlatinum game, where Nintendo finally and truly breaks their own rules regarding the type of content and willingness to be provocative. Imagine it, Miyamoto last game he co-directs with Kamiya given a budget and time table that Platinum normally could not achieve on their own, plus the glitz and glamour and attention of the whole gaming industry for what would be Miyamoto's last personal project.
But in any case, I don't think Nintendo will abandon the Wii U until Smash Bros sells like shit (it won't), Mario Kart totally bombs (it won't), and Zelda goes under 7 metacritic and doesn't even break the top 100 (it won't happen). Their gonna try pretty much everything game related to make the console survive, and hopefully that means they finally listen to Nintendo fans and give Retro back Prime (or Metroid in general), and short term release a easily upscaled HD Smash Trilogy with the "hopefully" great netcode from the new Smash. Along with a new real Pokemon strictly for Wii U and not some Colosseum BS. I actually think if they released a few HD ports they could boost profits short term. And there's a lot of em'. Metroid Prime Trilogy HD anybody? If cross-platform play was introduced, hell, they could even put OoT Remake up on the eShop, same with Luigi's Mansion 2 and the new Zelda. You don't think that would sell a few copies?