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JUG said:
I think Wii2 will be very powerful and affordable. Many people have commented that we're reaching a point of diminishing returns on graphics. The Wii2 can come out with excellent graphics and still not cost nearly as much as the PS3. I think Nintendo should be the first out the door next gen and sell the Wii2 alongside the Wii (much like with the PS3 and PS2) but unlike the PS3 they should make sure the original Wii software is completely compatible with Wii2.

I think Nintendo and Microsoft may come out around the same time. I do agree with you that we will not be able to tell the difference as well in graphics with future console generations.