I am a huge fan of software developed for specific hardware. That is why I reckon that Zelda & Mario and other IP should stay on Nintendo created hardware. He has a point when he mentions that people will buy the console purely for the Nintendo AAA titles like Zelda.
As for the device itself, I am under the opinion that is being built to rival the current generation PlayStation and Xbox360, which is not really ideal. But, as always, I am sure that somehow Nintendo will pull something amazing out of their hat. People were also not that positive about the Wii (especially the core gamer group), but it was a huge commercial success.