Yeah, they should really prematurely kill the Wii U and make a brand new, more expensive console and kill all of their consumer good will because Mario 3D Land, Pikmin 3, and NSMBU all look godawful and Nintendo should be ashamed that they can't produce acceptable visuals.
I think the fear is that they will continue to lose 3rd party support (or get poor quality ports). The illogical assumption made is that 3rd parties would port One/PS4 games to this new console when very few are currently bothering to port the PS360 games now.
Nintendo needs to find a way to get consoles in houses. They have IPs people care about. They need to figure out a way to hit the price point that your average consumer is willing to for a Nintendo console.
If anything, Nintendo needs to double down on their classic franchises. Stop chasing people who aren't interested in Mario. Start trying to sell the WiiU as a second console for core gamers and a family friendly console. You have to be who you are, and Nintendo has been the secondary console/family console since the N64 days.
They hit a fad breakout with the Wii. Trying to bottle lightning twice is where the WiiU erred, and the 3DS succeeded in spite of their gimic, not because of it.