The only problem is, that it never worked for a home console world wide and that is a fact. Even if Nintendo supports the NX with the same amount of games they earlier had split on two devices, it wouldn't work. The people want more than Nintendo games on their home console. They want their Battlefields, GTA, Fifa and that kind of stuff. Otherwise you never gather the game crowd.
This. Nintendo's offering, as good as it is, will never be enough to justify buying a product (or even a product line if you count both the handheld and the home console) for only one kind of offering. They are
not able to support it with a diverse set of software spanning over the most popular genres, and certainly not in the state they're in.
Their development is centered around Japan that caters to a certain kind of games, their only other two studies were charged with platformers (Retro) or minor software projects (NST) and were not able to re-explore traditional Western genres with their own 'Nintendo flavour'. You can despise Western games as much as you want, and for sure many aspects you criticize are valid points, but look at BotW: It's a game that has absorbed so many modern Western elements, it modified them in a way people got excited beyond the normal level of healthy hype.
So yes, BotW is for me evidential that Western taste is needed to break up Nintendo's staleness and it will be successful with the audience. Nobody will lose anything with this kind of investment but we will gain so much more from expanding our Nintendo centric horizon. Now the issue is very clear here. As stated before Nintendo themselves do not posses the physical capability to solve this task, despite having the cash and countless opportunities they haven't invested in additional Western studios in over a decade. The only option to compensate this is recultivating a market for 3rd parties in one way or another. In the long run Nintendo can't compete in their current form only relying on diehard Nintendo fans.
