1. No console war has been decided by graphics. Ask the PS2, PS1, Wii, DS, and NES. The SNES was the only true amazing superpowerhouse that ever won, but that's even debatable.
2. Generations are strictly historical terms. They refer to periods of time and nothing else.
http://en.wikipedia.org/wiki/History_of_video_game_consoles_(seventh_generation)
The 7th generation started with the DS, and it includes every system that came out after the DS, including the Vii, and the Wu, and the Gizmondo, and several others.












