Nintendo is not going to make a powerful console. Their games are simple, cartoony, and childish. They do not need a powerful console to play those types of games, and it'll help them prices it low for the casuals and kids.
With that said, next gen Nintendo will get watered down ports like this gen, but that's not going to matter with kids and casuals buying the cheap Wii U for it's family friendly games.
Man... The only reason I dont put you on ignore list it's because I dont like to ignore anyone.
Nintendo games aren't all cartoony, simple or childish.
Zelda for once, it might be a cartoony style, and even so not all of them are, but it's a game that's quite complex, some of the puzzles it has aren't that easy for little kids.
And cartoon style graphics is different from bad graphics, look at anime games, they're cartoon styled, but some of them have amazing graphics, realism isn't related to graphics, you can have a powerful machine but not want to use realistic graphics.
And you talk as if Nintendo doesn't care about graphics of powerful machines, only the DS and the Wii, were far lower in graphics compared to their rivals, and even so, they sold well, I don't believe in harcore gaming, just because you play something doesn't mean you're a real gamer.
The Wii U might have lower graphics than it's rivals, but then again, the PC is far more powerful than any console and it's graphics are on par with it's console counterparts, so until games that take the max out of a console comes out, you won't really notice the difference.