Psyringe: I wouldn't call it dead, as there is (and will be) a demand for the Wii U. However, I don't think it will ever meet the sales projections that Nintendo believed in while they were developing the Wii U. These projections were, in hindsight, quite dubious to begin with.
The problem is that the first Wii, by virtue of being very different from other consoles, found lots of buyers who wouldn't usually be interested in video games. In sales predictions, you cannot treat Wii owners the same way you would treat Xbox or Playstation owners with regard to their likelihood of upgrading to the next generation. Lots of people bought the original Wii as an experiment to try out a hobby that they hadn't been heavily invested in so far. This was easily done since the Wii was cheap, and many games for it were quite simple while still being fun. And while the Wii definitely brought more people to video gaming, there is also a huge portion of Wii owners who simply found out that they didn't like video games all that much after all, or who lost interest after a while of having fun and returned to their other hobbies, or who are content with whatever the Wii has to offer and don't see a reason to upgrade. The usual reason of "being able to play games with better graphics" has less appeal than for other consoles because if Wii owners cared a lot about high-end graphics, they wouldn't have bought a Wii to begin with.
In short: I believe that the Wii U is not dead, and has its place in the current market. It's just important to understand that a huge part of the Wii's success derived from its appeal to people who weren't gamers already. And while some of these people may have been turned into gamers eventually, many haven't. It seems that Nintendo did not weigh this factor high enough in their predictions.
I agree with that. the only people the WiiU really appeals still itching to play the new Mario, Zelda, Metroid, ect. That may not be ideal according to Nintendo, I think the Wii U will survive. To be honest if I were to get a console this generation it would be a Wii U because of it first party titles, but before I would even get that I would get a 3DS. I have enjoyed the times I had on Nintendo consoles in the past, but I kinda transitioned to PC gaming thanks to GOG which is great because instead of having to choose between the kind of games you would find on a Nintendo console or the stuff you would find on a Sony or Microsoft cosole I get both on a PC :D.