Ah crap, I'd completely forgotten about the bdrom! My bad.
Well... if you want to try and justify the language, I guess that's their loose interpretation of the Iwata Asks, considering "system memory" as the OS footprint and "video memory" as game memory could make some kind of sense.
As far as Wii U being the baseline? Maybe for some titles, but from what I can gather, most publishers are already treating it like the Wii in regards to 8th gen development (despite the architecture being able to run the games, unlike Wii).
Most?, the only company that is, is EA.