I thought this same thing about the NES when I got my hands on the Master System. There has always been an inferior system leading sales since the dawn of Video Games. Do you think the Atari 2600 was the most powerful on the market at the time - no.
It is all about hype and market. Obviously people don't care about HD and crazy graphics. I will say that I am not a huge fan of the Wii, but it has revolutionized the home video game market. I had never been asked over to someone's house to play a video game unless it was a good friend. Now I have random people at work asking for everyone to come over for their "Wii party". I can't imagine someone at my work asking if we all want to come over and have a deathmatch in a FPS. Times are changing. I guess it is everyone's own opinion if that is for the best or worse.







