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I don't see why all Wii U games would not be full hd. Being full hd does not mean the art direction has to change. Full hd will make any game crisper and more colourful. Full hd has got jack all to do with realism. Lol.

This worries me. Every Wii U game should be full hd with its power. And that will not affect dev teams or art direction.
I Remember when Nintendo were at the forefront in graphics technology and Mario was the flagship title to show off awesome visuals. When I grew up with Nintendo, ninty was the console to own for best visuals and best tech right up to the n64. After that they gave up.