Railing against the quality of games on the platform is rich, coming from Nintendo, since the Wii is a landing zone for shovelware like never before, and the DS has been just as bad.
I chose to interpret their GDC keynote as an attack from being backed in to a corner. Someone else stole their schtick, and now they are panicking.
If you meant that Nintendo should be afraid of the massive success of iOS, then yeah, I kind of agree. Still, making a sequel to a monumentally successful mobile game on the most successful gaming console at the moment (or its 3D successor, due to launch soon) would hardly be a bad idea. Yeah, lots of "non-gamers" love Angry Birds, but that's the same market that Nintendo had been going after with the DS in the first place (remember Brain Training?).