(Sorry for the multiple posts. I find it easier to create multiple posts than to use the editor and attempt to manage quoting multiple people with multiple 'thoughts')
What can Nintendo do? Reading Matt's and Morgan's rebuttal to my thoughts, and thinking on my ambivalence to the WiiU, what I find lacking is substantially marketing.
My perception of the WiiU is based on the Wii: I didn't like its dodgy, erratic motion control (I always felt like I had palsy, holding the controller and seeing the digital hand shake about on screen). Lacking recent experience, I expect the WiiU to have that weird, unstable feeling. I have negative expectations about its fundamental control scheme. And then they have this odd, unresponsive gamepad. I've fiddled with one at Target of BestBuy: in contrast to modern capacitive screens, the resistive screen felt unresponsive and coarse.
The game system also seems like a secondary system. I buy it after I've got a main system and played all its games. The N64 and Gamecube, I recall having top-notch third party games to rival other systems. Jet Force Gemini. Wetrix. Rogue Leader. Turok. I spent more time playing non-Nintendo games.
But with the WiiU, I see it as the second choice. It won't have the mainstream games (Bioshock). it would be like buying a PS3 if the only games it played were the cool PS3-only games games like Journey and Last of Us.
From Nintendo, I want an Apple-store like experience -- a quality in-store demo. I need to play games on the console that reveal why I want to own it. And particularly, why I'd buy it over a One, PS4, or even used PS3 or new iPad Air. Because for me that's what it competes for in dollars and attention.