Well Consoles have always been about a compromise on cost. It is what makes them so compelling , you are getting a good entertainment product for a reasonable price. Sure for the enthusiast PC gamer that may be frustrated being 'held' back, but gaming at it's core has to be affordable.
Hate to say it, but i don't think people generally see value in gaming. £300-350 seems to be the sweet spot for new generation consoles, The ps3 and X1 really struggled for going higher than that.
I'm kind of surprised to see how quickly the current gen prices have dropped, both now can be snagged for lower than 300, so i can maybe see LCGeek POV as some merit. But i don't think Nintendo will price themselves out of range of the other two, especially when they have a image problem to some degree with adults and the hardcore gamer. Previous generations have shown that power is not really the be end and all off for the general consumer. It is generally about the overall package. The PS4 is slightly different, but they managed to put out a console that is cheaper and more powerful than it's main competitor.
I think this as much as about laying down the foundations for the future as it is competing, not just for Nintendo, but for the other two as well. The move to X--86 seems to suggest that Microsoft and Sony had this planned from the start ( and perhaps too afraid to announce due to the X1 DRM fiasco). With the success of iterative products it seemed an obvious move for the industry, and if handled well it solves some of the industry lesser know, but important issues such as legacy, backward compatibility and for the consumer keeping a library of games moving forward.
For the general consumer, if they see Uncharted 4, or Zelda (it looks amazing as it is) available for a reasonable price point, they're going to jump in so to speak. And i think maybe that where the PS4K may get unstuck. If the general consumer sees Uncarted 4 running as beautifully as the videos suggest it will do on a vanilla PS4, and then see the 4K on sale for a couple hundred pounds more without noticeable effect? They're going to go for the cheaper option. That also applies to the NX. If it is on sale for £350-400 but the PS4 on sale for £280 producing similar looking games, it is going to struggle. It is all about balance.