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Stop making it seem like graphics hinder fun, though.  Graphics add to the experience.  More processing power and hard drive space adds to the experience.  Those things allow developers to do more.  Nintendo could have had the best of both worlds and released a slightly less powerful than Xbox360, DVD-based machine (you know, that actually plays movies...I mean...it's not a needed feature but it never hurts...still waiting for the Wii drivers for that) with Hard Drive for $300-$400.  Sure, Nintendo is doing very well right now but if they just added a little more and took a slight (less than the other 2) loss for each console initially, there would be NO REASON to buy the other 2 consoles.  Faster load times (with hard drive), better graphics, more things happening at a time, same innovation.

Now, maybe that doesn't make as much financial sense.  Afterall, they are making money on each console sold.  But I thought Nintendo didn't care about money.  Isn't that what I keep reading?  Doesn't Nintendo just want everone to have fun?  Seems to me that offering a console that is still cheaper than the others (I do not include the 360 Core because I view it as a waste of money unless you add stuff on) and offers the same innovative experience they are now would pretty much leave gamers no choice.  Afterall, the Wii would probably have GTA IV then.

I'd say then that the graphics were "good enough," maybe.  I think I like it better this way anyway since I'll just get 2 consoles.  1 for my girlfriend and innovative controls (that I hope are actually better for some things), and 1 for cutting-edge graphics and speed.  60fps Ninja Gaiden Sigma will be fun.