Nintendo may refer to themselves as an "entertainment" company, but they still think and act as a toy company.
As much as I respect Miyamoto, I think it's time for him to step down from his current role and return to what he's actually good at. A good game designer doesn't necessarily make a good general manager / decision maker. And Miyamoto has proved to be a terrible GM for Nintendo. He shouldn't be able to dictate the company's strategic vision and he most certainly shouldn't have the power to guide development solely towards the type of games that he, personally, prefers. This kind of over-managed and overly centralized structure is making it difficult for new blood and ideas to emerge and for outside information to filter in.
In an ideal world Nintendo would position their consoles as entertainment products with games for all audiences, not as toys for little kids and families. The aesthetics of their OS wouldn't resemble something designed in an elementary school, they'd have a modern, sleek and neutral design like Android. And Nintendo's designers wouldn't only create content for the kids/families demo.
Truth is, Nintendo targets "everyone" only in the theoretical sense. In actual, real-world, conditions, Nintendo's appeal is very narrow. I'm sure that Nintendo considers Kirby as "a game for everyone". That's fine, but how many people, above the age of 10, are actually interested in playing a Kirby game? And what happens with those people? Do you ignore them as an audience? Even a franchise like Zelda, that could help Nintendo expand their appeal beyond the younger audience, is made with the younger demographic in mind.
In an ideal world Nintendo would widen their appeal by building an entire division focused on providing high-quality games for older demographics. Not games with macho-gorillas and giant guns that kill everything that moves. But games that, thematically and aesthetically, would offer an actual mature experience in the same way that good movies and novels do.
As a side note, I think they are literally killing themselves by trying to chase profit margins that are impossible to achieve in a mature industry.