The current setup is perfectly fine, although I would probably add some more RAM so that it's a nice, round 1 gig simply because I have a round number fetish.
Other than that, "slightly more powerful than the PS3" is more than enough - the main issue with the current generation consoles is severe lack of memory rather than lack of computational power.
This next generation will not be a war just on hardware - it will the the continuation of what happened this generation. A war on hardware, features and services.
Consoles became more than just things you play your games on - they need to be full-blown and preferrably network-integrated media hubs. If the WiiU succeeds at that (for example, using the WiiU remote to choose songs in an internal music player while being in the other room sounds like a good feature) and perhaps includes certain cloud functionality or network functionality that will allow it to share content with computers, it's going to be a blast.