Price cut now does nothing much except increase losses. Wait for a game being sold that people may want to buy since it's with a price cut. Wii Fit U seems the next major game that might fit that billing. No, it is not "too late" already (at least for Japan; With the Ubisoft comments/actions, Western support seems already gone, if it was ever even there ...).
I honestly think that (bolded) would be their best strategy all around, for both Japan and the west. As you said, western support was never there anyway. The mid-tier western stuff doesn't really exist anymore. It's either AAA, or digital sub $20 stuff. The AAA pubs just don't give a shit about Nintendo. And with Nintendo offering good terms on the digital stuff, they should do fine in getting a lot of the XBLA/PSN stuff on the e-shop. And they should still do fine with the more family friendly offerings from the west. But the AAA western support won't be there.
But Iwata should be busting his butt working all of his relationships in Japan trying to make the WiiU (and really Nintendo as a whole with the 3DS included) the console for fans of Japanese content. It would be a clear distinguishing point for the system, and if done properly could provide a very workable install base in the west.
It would take a lot of backroom discussions and wrangling, but it shouldn't be an impossible task. 360/PS3 audiences have all but abandoned Japanese content over the past few years. Unless you are on the order of Resident Evil or Metal Gear, etc, Japanese stuff sells like crap in the west, and even the biggest Japanese franchises (RE, MGS, FF) don't even come close to matching the top dogs from the west (Battlefield, Call of Duty, Assassin's Creed, GTA, etc.) Throw in the extra costs and time involved in trying to match EA, Ubisoft, T2, Actv, WB, on the PS4/720, and it could really be a recipe for disaster for Japanese firms that want to compete in the west.
This is where Iwata steps in to try to rally the Japanese pubs around the WiiU/3DS. Microsoft made their pitch for Japan, and have basically pulled up stakes at this point. Sony has gone all-in on their push for the west, and have left their Japanese efforts to rot. Nintendo is the company which still has a definitive focus on catering to Japan.
And it doesn't have to be a skewed situation. As I said before, Japanese pubs could be in for a world of hurt if they really want to pursue the western market by competing with the big western publishers on the 720/PS4. If they think the last few years have been tough in the west, well...
Having a platform(s) focused around Japanese content would provide the audience in one place, instead of having it spread out thinly amongst several different platforms. And keeping the graphical/showpiece bar lower would definitely benefit the Japanese devs who have struggled to remain relevant on the PS3/360.
Will it happen - probably not. It's extremely difficult getting more than a handful of people to agree to work together on anything. But it's something Iwata should be working on, and keep chipping away at. Nintendo would have to do a herculean job at ensuring that the games are brought over to the west and marketed, and some Japanese pubs would probably need an expensive failure or two on the 720/PS4 before reconsidering their strategy - but it might actually be the best all-around fit for Japanese gaming to find a home in the west. Try to recreate the old NES/SNES type of environment, where the biggest western players were on PC/C64/etc., and most of the best NES/SNES games were Japanese games, even in the western markets.
Crazy idea - I know, and everyone feel free to commence the mocking - but it really does seem the best path forward in the west, if there's any way of starting to put it in motion.