From what has been displayed in the HD-Experience demo, the Wii U seems to be able to display graphics at a level where it would be difficult/impossible to create something significantly better without hardware that was an order of magnituded more powerful.
If the rumours are true and the Wii U is using an R700 it should be able to render polygon and texture detail at close to the limits that 1080p can display, and the main difference between the Wii U and systems that come after it will be the lighting and effects. With how far lighting effects have come we're hitting the limits of what can be done under a local-illumination system and we will need to move to a global illumination lighting model to really see a major change; and the successors to the HD consoles would need to more powerful than any system we can currently buy to pull that off and, unless they release in 2015 or later, this would mean that they would be very expensive.
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