To be honest I'm quite disappointed about this news as well as the recurring updates in the last couple of months that the console isn't really all that powerful. Rumours of hardware and pricepoints definitely seemed to indicate that the Wii U was going to be a respectable leap (my definition of respectable may be different from others) over the other consoles. I still think that leap could have been facilitated in a ~80W console with a ~$299 pricepoint.
Let me first say this. The Wii U will definitely take advantage over the other consoles with a huge amount of EDRAM (way easier to keep up actual 720p graphics), an amount of RAM that is much less of a bottleneck, likely modern DX11 features, as well as a still-undefined-yet-seemingly-rather-modest raw power boost. Portability is probably not going to be much of an issue either, as Nintendo hopefully won't have the GPU 'underfeatured' as well as 'underpowered'. In this sense, a console that many will consider a 360+ is probably going to cut it for a lot of people, and definitely will not going to be a 'Wii all over again'.
The thing that disappoints me, and the reason I get involved in these hardware discussions, is that Nintendo games were always the cutting edge of what could be done before the Wii was made. With the Wii, Nintendo still made some beautiful games. The Super Mario Galaxies were two of the best games of all time, and both MP3 and Skyward Sword to me rank as some of the best in their series' histories. But I feel all of those games and many other Wii games were held back by hardware that simply couldn't pull off anything (well, barely) we hadn't seen before from Nintendo. The thought of what games we could have had if Nintendo went beyond overclocking a GameCube last generation blows my mind. Now the Wii U will probably be far from the situation the Wii was in but it still pains me to see how Nintendo nowadays seems to be lacking in ambition when it comes to hardware, at least to my tastes. For some time last year we had reason to believe that the Wii U had a GPU somewhat comparable to
this and it blows my mind to think what Retro, EAD and Monolith could do with that kind of hardware. I think the Nintendo hardware guys are a limit upon the Nintendo game development teams, which is such a shame because I consider them to be the best game studios in the entire world. Of course Nintendo has valid business reasons for doing so, but I personally always wish that Nintendo's games deserve all the power that is reasonably possible.
That's not to say I'm not excited about the Wii U games. Nintendo will make them awesome if not legendary as always. I just feel they're bottlenecking their awesomeness.
So yeah. I'm curious to see what the final specs are going to be. Nintendo kind of had me excited over the last year, but recent news makes the Wii U seem disappointing in contrast. Although recent rumours seem to be disappointing, combining them all still produces as confused mess so I'm going to hope for some positive surprises this year.