You're not wrong. But they have to try. The bolded are things people expect with their video game consoles in this day and age. Should Nintendo just ignore all of those things forever? Maybe they won't nail everything with their next console, but if they take a big step in the right direction with it, the market will take notice. By the next, next console, who knows?
Look at the PS4. It's selling at a Wii-like pace. They're obviously doing something right. That is the strategy you have to be considering right now if you're Nintendo. You can still innovate while giving the market what they clearly want.
Respectfully, I think you're underestimating just how much time, money, and internal restructuring would be required for Nintendo to make any non-trivial amount of progress on that front. Yes, Sony and MS were able to start from scratch in the past, but they have vastly deeper pockets than NCL does.
There's no easy or painless way forward for Nintendo, and their hardware business is probably fucked no matter what, but I have to think that they're at least marginally less fucked if they take the low-end route and avoid competing directly with Sony/MS.