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OP: No, if Nintendo focuses more on graphics, it won't be the same recipe any more and there's no reason to think that ploy will work at all. All it would accomplish is releasing games with a high number of polygons with a very "childish" or stylized look so unless they plan to make all their franchises realistic and in effect ruin them, these games won't compete directly regardless of HD or no, just like Sony and MS' motion controllers won't compete directly with the Wii-mote.
Its not what the respective consoles are about at all.

Why is it that trying to follow Nintendo's lead is silly and will make you perish yet Nintendo can follow Sony and MS and gain from it? It doesn't work that way I'm afraid.