While I would love a graphical beast these days it's just not necessary. Pc games used to be up and above consoles and look at them now. Even dedicted ones with no ports are just a few resolutions higher with some minor graphic effects extra. I think that Nintendo just took a step back this era and saw that as long as games are fun they'll sell regardless of graphic supremity. The new system is probably going to be slightly stronger than the PS3 using dvd18 for storage ( why pay for blue-ray if they're realistically not going to use it) using the same 3DS functionality ( friend codes, store...) with the controller using a HD touchscreen like the DS.
Think about it for a second... why add a screen and not be touch. Standard controls and touch for switching weapon loadouts ( surgical tools too, c'mon Trauma whatever ), using items, drawing spells, notes on the fly (3DS). Upscale old Wii titles and port over DLC (3DS) and many will trade up. When Sony's and Microsoft's systems come out it will be like Crysis 2 all over again. Yeah, they look better but it's not a huge difference that games can't be ported over unlike now. They can also be complete bastards and design the controller like the current classic one add the screen, 512MB, and just let you play nes and snes games on the controller while someone plays on the system with another.
