It's unlikely with the new demographic Nintendo has captured that they'd alienate themselves with a comparably high end console (high end console are more expensive , the casual gamer generaly isn't as concered about graphics).
The only situation I could imagine where Nintendo would return to it's roots is if Apple entered the market and completley dominated or either MS or Sony revised their strategies effectivley to dominate the new demographic, but this is unlikely. The face of gaming has changed as we know it , technical excellence isn't something any gaming company is going to be too concerned about IMO , the big 3 will be wanting to get a good balance between the traditional gamer and the newer generation of gamer (IMO it'll be a OLD 30:70 NEW gamer split in terms of priority.)
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