To be fair to them, I don't think they want/assume it will have a controller with a display. They want it to be a completely standard home console with a standard controller with competitive power because they think power = third parties which, like you said, is nonsense.
Obviously it's all based on what they want, and has no grounding in reality. But I do get the parallels between the Eurogamer rumored device and the Wii U, although when Iwata says we "absorb the Wii U architecture" one might expect the NX to have some similarities.
