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I don't think anyone should 'skip' a generation. It might've been in Sony's best interest to tone down the capabilities of the PS3 for the sake of their finances, but what's done is done. I'm sure they won't make the same 'mistake' twice. I don't mean that the PS3 was a mistake, I just think they were rushing too far ahead. I believe they were banking too much on Blu-Ray being a success. It was very risky.

... almost as risky as Nintendo releasing a motion-based console.

However, I am expecting Nintendo to blow my socks off next generation. They have more money than anyone can count. I want virtual gaming. =)