I don't think anybody expects Nintendo to get out of the hardware business. What I think would be a great and smart business move to make more people more aware of Nintendo. Would be for then to start making games for the iPhone and have a bigger brother version of those games on a console like the Nintendo Wii. I think It would really get people attached the games excited about the games and Actually want to go out and buy their hardware.
Plus, let's face it if Nintendo decides to make into the iPhone they would make millions if not billions of dollars off the games. And I really think they should get out of the portable videogame business and focus on consoles.... IMHO.