It's a crazy decision in my opinion, but then again Nintendo have made quite a few crazy decisions over the course of the last two years.
Nintendo has been making crazy decisions since they started making video games.
Remember the whole "N64 won't play CD's" fiasco that caused many developers to jump ship to the PlayStation?
Remember the whole "GameCube supports online gaming, but we [Nintendo] won't support it because we don't think it's important". Fast-forward to now, and Iwata finally realizes the importance of online connectivity in gaming.
Remember the whole 64DD add-on that was bulky, expensive, and pretty much worthless outside of a few user-creation games?
I could go on and on. Nintendo has made just as many mistakes as Sony and Sega, yet no one bitches at Sony for their flops (PSP Go, PS2 hard drive, PS2 network adapter, etc.).