I agree, I don't think Nintendo could stand to go any cheaper with their new software.
I think the key, though, will be in leveraging their back-catalog and the eShop. They could stand to price their older games more competitively. Not every classic title release has to be a Ocarina of Time 3D affair, and Nintendo needs to stop treating their old software like new software anyway.
Hype up the Eshop, fill it with classic gameboy/DS games priced to compete with IOS/Android market, and market the hell out of it. It'll add value to their hardware while legitimizing the higher cost of new software.