Have you got a link that shows Nintendo were actually aiming to be second?
I don't believe that. Wii could have been priced less, and could have been price-dropped more aggressively. Okay, seeing the machine selling well at the higher price, one can understand Nintendo not dropping down to $100 ASAP. But Wii is in effect the same machine as GC, being sold at retail for $99 in 2003. Wii selling for $250 3 years later shows Nintendo were never intending a $99 console. Or maybe they wanted $99 hardware but decided they'd charge full price.
Ultimately though, Wii's choice was low spec hardware for maximum profits, the like of which console hardware has never seen before.