It's better than nothing, though, and it helps build the idea that you can get an NX and get more than just Nintendo games, which is how you build up the sales of "voluntary" third party games and that's how you recover.
The problem Nintendo faces is dearth of software, which is caused by split resources and poor third party relations. The NX ameliorates split resources, and cross-compatibility could help on third party relations by getting the Japanese handheld games on consoles in the West where they'll likely get better exposure. Western third party support is the tough nut to crack, and i think we've gone over why the whole "meet Sony and Microsoft head-on" strategy is very risky: imagine the humiliation and lost money of doing something like getting a promotional deal for Far Cry 5 and still getting badly outsold by the PS4 and X1 versions.
Much of the PS4's success shows that aside from having the right hardware environment, success is about the perception, and bringing back fan-favorite games creates good perception and gets people noticing the platform. Then you entice back western third parties, slowly, starting with the essentials like Madden and CoD, and moving up to more ambitious stuff.
