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Should PS4 be more powerful? - Yes. Of course.

Should they aim to be the most powerful console out? - No. The most powerful is the most expensive and never has the most powerful console won a generation. Better to sacrifice some power to be closer to mass market price. The system that sells the most in the first year or two has all the 3rd party support and the other more powerful system will be stuck with ports. That's why MS went for an early start instead of trying to out muscle Sony.