They probably feel like idiots missing something so bad. Now the small minority isn't going to buy any games for years, heck I went to 5 games to owning 80 in the space of a few days. The only clear divide here is that 90% of these games I would've never bought, to begin with, but now future titles e.g Pokemon & Smash Bros they're going to be banging their heads over.
I don't actually understand how something so easy to do was missed during what I can only assume would've been months of probing the OS & device to see if any backdoors were left open. Nintendo likely don't care since the small minority will make use of it but obviously they will correct the problem to avoid it becoming more widespread.
Considering I have 400GB MicroSD full of what probably amounts to between $500-$1000 of games, they screwed up lol.
From my point of view though (slightly off topic) I don't care about doing the right thing and how it's morally wrong to pirate games. The company doesn't give a crap about us as the consumer we're just walking paychecks. Plus I was entirely put off when they made the online service a paid service.
So all in all, they're probably feeling dumb but it's so little lost for the company as a whole it's probably not a big deal other than banning those who make it obvious they're breaking the ToS. Did somebody(s) get fired over it? Who knows, it's someone's job to make sure they're aware of things like this before releasing it into the wild, right? I doubt they knew about it or they would've had that iPatch day one. They're just going to pretend it never happened as any company would, Nintendo news sources already advertised it though, literally. Poor Nintendo.