If you factor in teams currently working on phones & tablets, indie-teams on the PC, DS and 3DS , and Wii the vast majority of developers would go bankrupt trying to push the HD consoles currently, On top of that, a large portion (potentially the majority) of development teams on the HD consoles are currently losing money and will not survive if they see development costs increase from where they currently are. While these teams will probably use the additional processing power to eliminate polygonalization artifacts, texture pixelation and to render at 1080p@60fps wit 16xAA and 16xAF I really don't expect them to increase detail to a level much beyond what they currently are.
I think Nintendo's expectations are in line with mine, and what they're saying is they are not going to block games from being released for the Wii U based on whether they have "advanced" graphics







