So everyone is allowed to have exclusives and hold content hostage except Nintendo? Though I don't like the idea of exclusives, there are far greater evils in this industry. Nintendo IP's being proprietary, to me, insures that Nintendo's style of game-making won't be altered to the whims of Sony and Microsoft. It would be naive to even humor the notion that they would let Nintendo develop without interjecting and neck-craning. I don't want to see a brown and grey, hard-core Pokemon with epic choir tracks. Just no.
That said, Nintendo has themselves (or at least their marketing team) to blame. I like the Wii U. Never having had a Wii, the backwards compatibility is nice for a lot of stuff I missed out on. I dig some of the new titles too, and am excited for some upcoming releases. But I have never seen a Wii U add. Not ever. Microsoft has ESPN and sporting events locked up and Sony's "It's Such a Perfect Day" spot has been visible and effective for a while now. But the Wii U is absolutely nowhere to be seen. Granted I don't watch much TV; and I don't think I'm a typical entertainment consumer, but this lack of exposure has got to have hurt Nintendo badly. There are lots of people that still don't realize the Wii U is a thing, and not a peripheral for the Wii. The Wii's marketing was aggressive, clever, memorable, and generally well received. Why the same effort was not made to inform and attract the public in the case of the Wii U, I can't even imagine.
Heads in their marketing department need to roll.
They also made a miscalculation in coming out a year in advance of their competitors. It was a risk, hoping for a large install base, that didn't pay off. I can't really fault them, as hindsight is 20/20. But, in so doing, they failed to adequately court the third party developers and now face a fierce uphill battle if they wish to win a modicum of support. They additionally face the stigma of their machine, though plenty capable, being underpowered.
But this idea of dropping current hardware support would be suicidal. The install base would lose faith in the brand. And the brand would have its strings pulled by the other platforms to make games for as wide an audience as possible (as those platforms see it), thus diminishing their brand identity. With the software being pulled away, I don't think the 3ds as a device would be able to survive the market shift, and that would be it (I shudder to even contemplate it, as much as I adore the 3ds).
As it is, the 3ds is successful, and I think headway is there to make for the Wii U, though it will likely be immensely difficult. And despite current hardware troubles - especially considering that Nintendo has faced and survived hardware troubles in the past - I see only disadvantages in abandoning their machine only year into it's life-cycle and multiplating their IP's.
Finally, what Pachter is doing is not making a prediction, but rather a suggestion. A daft suggestion that, if followed, would destroy any positive repute in the brand, and run Nintendo into the ground.