Very cutting article and incredibly interesting take on Iwata's rhetoric throughout his Presidency thus far. However, it is incredibly one-sided, only talks to "hardcore" gamers, and takes a lot of stuff out of context and re-frames it for modern use. So, the function of the article is effective, but flawed.
For example, it does not seriously take into account the intended audience for the Wii or the Wii U. It does not seriously take into account the quality of software released under Iwata. It does not seriously take into account the 1,000 new employees at Nintendo (a time when most are cutting). It does not seriously take into account the many new studios that Nintendo has helped create. It does not seriously take into account the restructuring (something that takes a long time) that has been in motion since 2011. It also does nothing to address the expanded audience that did buy and enjoy the Wii. We do not have a complete picture.
So, yes, Iwata has made some incredible blunders rhetorically, economically, and materially. Most of these blunders have been specifically accumulated at the cost to hardcore gamers and investors. I suppose asking Iwata to step down is a judgement call on whether the positives outweigh the negatives, and whether or not a new President would look at this situation and perhaps cut software quality in favor of consistent releases.
I honestly would rather have 1 classic game like Mario Galaxy, Skyward Sword, Metroid Prime 3, Punch-Out!!, Donkey Kong Country Returns, Sin and Punishment 2, and Smash Bros, (and I'm predicting Pikmin 3 as well along with several others I have not mentioned) a year than sacrifice them for 10 less-than-Nintendo-quality games (because there really is a difference in how Nintendo makes their games) a year.
That's just me.