Most people I personally know thathave an iPod don't use it for gaming. Paid apps don't even cross their minds until I show them my iPod. People usually get a couple utility apps, and other than a few people, barely use their iPod at all. Compare that to Nintendo and you have a completely different thing. If Nintendo came to iOS then their reputation would go wwaayy down. Think of it like Gameloft: at first if it was a good game you'd buy it on a different console, but then they came to iOS. They suddenly started making crappy rip offs of games, cuz that's what people want. Suddenly people realize that the game company sucks, and stop buying their games. Nintendo wouldn't have to make crappy rip offs, but if they ported games, theyd still be pretty bad. But I don't know. People wouldn't buy an iPhone JUST for Nintendo games. So people who already have an iPod see their games, suddenly buy them, it's a great experience, but the sequel isn't out for iOS. One now has to buy it on a Nintendo console. Profit! (happened to me with Phoenix wright, although it's Capcom) Off the same idea as ^, they could provide lite versions for console games, making the buyer actually have to buy the game on the console. With a small price reduction, this could be possible.
Seems some inverstors agree with SpartanMastah http://www.bloomberg.com/news/2011-08-10/mario-pressured-to-jump-to-iphone-as-nintendo-wii-3ds-slump.html