My response to this line of argument is that Nintendo knew well what it was doing at every step with hardware strength. They didn't want to pay for crazy HD budgets, and they still don't. I think they have the right idea, given how fragile the industry's looking, but they've obviously taken it too far.
I like the idea of hiring out for a Mushroom Engine that can leapfrog them to a higher level than what we're seeing with 3D World. But even if they have a more robust game building environment, they'd still have to shell out for textures and whatnot. Are they feeling threatened enough to make this kind of move? I doubt it. I suspect they're waiting to see what happens with XBone and PS4. If those don't do much better than the WiiU, Nintendo will probably feel pretty good about itself. If either is a smash hit, then they might have to start rolling the dice.
The thing is, from our level, and the games media level, Nintendo looks like its in critical condition and needs to fix up its **** RIGHT NOW. But from a corporate/shareholder perspective, I don't think they're feeling nearly that kind of pressure yet. Give it a year.