I'm still going with 'barely anymore powerful' for the Cafe. I know the rumoured specs, I know they're a sizable improvement, I just refuse to buy any of it until I know factually otherwise. I cannot, no matter how hard I try, see Nintendo jumping into any kind of high end hardware. They might say they're doing it, but stuff like the 3DS shows their interpretation of such things is very different to what most think.
In fact, I fully expect the Cafe's reveal to be seriously underwhelming on a graphical level. I expect a lot of ports from third parties that are a mix of looking exactly the same as their 360/PS3 counterparts, and looking worse because they've spent less time with the hardware. From Nintendo I expect them to be like any developer who started from scratch with this generation's hardware; still getting used to the power under the hood. I dont doubt Nintendo will make full use of it over time, but they'll be starting like scratch like everybody else did years ago, and their titles will show.
Maybe this is a stupid perspective to have, especially based on the rumours. Whatever. I dig Nintendo, I dig thier games, and I dig their technological quirks. But they're well and truly out of the hardware race as far as I care, and I expect them to play extremely conservative even when they claim they're not. It will be a 3DS situation.
EDIT: For what it's worth, I refuse to buy into any of IGN's hyperbolic bullshittery. I dont care what their analysis of the hardware is, or what they're sources told them. They have a history of talking shit and over estimating and now is not the time to forget that.