Nintendo is focused on staying profitable. The people who are in the market for a $100 console are not in the market for a $300 console regardless of backwards compatibility. Nintendo is following SONY's lead and marketing to the budget conscious consumer as well as folks in developing nations.
That worked out well for Sega when the Saturn came out. I was in the company meeting when they displayed their business model as similar to GMC with the Saturn being the Cadillac, the 3DX being the Buick, and the Genesis as the Chevy. I'm not kidding. You need to be all in when you launch a new console. Sure, do a year or two of games for you previous system at bare minimum development costs because of the huge base (and ease of spitting out sequels). But it you devote any major resources to your old gen, you're going to get killed. It pissed off the developers (one studio rarely can produce quality games on multiple generations of consoles) and confuses the consumer base.