Yep, those are good points. I wanted to keep it within the realm of hardware power, but it is more complicated.
If Wii U had even half of PS2 sales at this point, I bet FIFA would goddamn be on there. That recalls my point about being dead last. No market pull, not worth the effort.
3rd parties actively loathe Nintendo,as does the mainstram media. Nintendo doesn't play according to the agenda, or agendas, that the Industry (a 'cartel' consisting of major software publishers and the media sites they influence) wants to push, and they haven't had to for the most part. Conspiracy theory? Maybe, but I don't think so. From things I've read and little hints I've picked up, some of the big features that are/were going to be on the Xbone and PS4 are there at the behest of the 3rd parties, not in the interests of the consumer. Nintendo says no to that kind of thing, for better or worse.
And you brought up the branding issue in your article, and that thread continues into the imaging issue. Every brand or product has an identity that the mass market expects those brands/products to perform in accordance with. People expect a certain kind of experience, catalog, price point etc. from Nintendo. You are right to bring up the pricing history, which is part of their established image. The market isn't as malleable as some people might think. People want what they know. In Nintendo's case, that is a family friendly, relatively affordable, accessible, broad catalog. They want the NES, over and over.
And then there is this effort to cater to 'niches.' I call them that, but they call them "demographics." I understand having a focus, but no console has been a major success only catering to core, or hardcore, or casual. The Wii could be brought up as an exception, but I believe a lot of core enthusiasts bought it when they thought it was going to deliver. And it still sold less than PS2, and slightly less than PSX (and population growth is a factor that Wii benefits from in that comparison). Point is, Wii wasn't JUST a casual machine, as JUST a casual machine would likely fail. Every successful console has had the attributes I mentioned in the previous paragraph. Even price: I think $300 and below is when consoles really start going mass market. Which leads me to a btw: PS4's launch sales don't mean a thing. Launches don't tell the whole story. Launch sales are easy, especially when you don't have major shortages. Let's' see what happens in a year, or when a major price drop hits. Then we will see if there is truly demand for next generation.