It SHOULD be true, dammit. "Wii U" has been criticized as sounding like a revision, and rightly so IMO. The U (you) is similar enough to Wii (we) that it would retain the familiarity and momentum of the Wii brand. Calling it just Nintendo U would be perfect.
The Wii sold like crazy but "Wii" does have a stigma attached to the hardcore gamers it's trying to court (casual, died early). Plus a tablet with a touch screen and a bunch of buttons is pretty far removed from the simple Wii remote waggle concept. "Nintendo U" would be a smart name I think, but what do I know.
In fact, announcing it as Wii U to get the branding tied in and then dropping it to U could have been a strategy all along. No reason to believe any of this is true, but I like the idea.
In my personal opinion, I think Nintendo really needs to keep the Wii in the brand and on the box. It will be their biggest selling point with casuals. They just need to market it as such. Market blitz the new "Wii U" the same way Apple does when a new iPad comes out and Nintendo will have the sales and the money to court 3rd parties to get the hardcores to buy it. There's no reason for casuals and hardcores to be at odds over a system, and Nintendo may be on the right strategy to achieve that in the end.