I applaud Nintendo's stance on this. Nintendo has first and foremost always been about fun, quality gaming. Let the uninformed shareholders bark at you all they want, as long as you keep releasing quality games, the real gamers will always support you, Nintendo.
Nintendo has really made some stumbles with the 3DS and I am not nearly the Nintendo fan that I used to be, but I can't help but respect their dedication to true, classic video gaming.
In my opinion, if the gaming market turns to micro smartphone games, then the industry is dead regardless of whether Nintendo, Sony, or anyone else follows along. Angry Birds and Farmville aren't video games.