They're right though. If they go with no power and no third party with another console it'll be the Wii situation yet again. The Wii itself was pretty much that bad too, people just gloss over it because it has a few good third party gems that are unique and well you know those 100M units sold too, but it's still a third party developer flop, just not as obvious as the WiiU due to the lousy sales of the systems.
They're not entirely right either. That's why you can say being weaker can work out, you just need to angle the argument toward a unified scalable system setup so people can choose home or portable, and have that OS on it be something stupid easy to write for and port to, like an Android derivative. If there's one thing they are good at is making people money with eshop games with the indie stuff they've received. Imagine if they could get all those good android games that use a game pad shoveled over with the IAP type garbage removed, like that Shield handheld/console setup. That nvidia device is no PS4, but it doesn't look like a slouch in the least bit either, and it doesn't compete with PS4 too and doesn't need to. Nintendo needs to muscle into that micro-console type market and dominate it as it's the high performance vs lower costs parts market that keeps the things more affordable.