No it's still pretty much NCL's and Iwata's fault. We have established that NCL can force games like Fortune Street onto NOA through a mandate. Thus, NCL has the power to mandate titles. Xenobalde was not mandated by NCL, when they had to power to do so. Thus, being ultimately their final decision and since they have the most authority and power, it is mostly, if not fully their fault.
Imagine an army unit commits an atrocity. It is discovered that the commander gave the order to commit the atrocity. Who is mostly to blame? The soldiers who actually carried out the atrocity, or the commander who commanded them to do so? The soldiers of course, have the option to not commit the atrocity, it's called insubordination and you might get flogged or put in military prison, but they still have that option. However, they do not have the most authority or power in the situation. The commander does. The atrocity would not have happened if he did not command it. This is why Nazi guards got less severe sentences than Nazi commanders.
Now obviously it didn't look good for NoA, as obviously the internet reacted like a mob an attacked the nearest target, but that doesn't mean they have the full responsibility or authority. Bashing NOA for decisions beyond their
direct control is a meaningless exercise. Better to question the real holders of power.