People are far too technology focused when it comes to discussions on improving games or defining a generation ...
When I look at how movies have evolved over time there is certainly a technical portion of improvement which is (mostly) focused on special effects, but there are significant elements on the technical side involving improved film and audio recording. While you can certainly date movies based on their technical elements, it is far more meaningful to group movies together based on the creative evolution over what has been produced; in other words to compare movies based on the acting, directing, editing, writing, and art direction rather than how grainy the film is or how good the special effects look.
Although a technical evaluation of games would have games produced for handheld systems as (potentially) being part of a different generation than console games, when you look at the creative side of things there are actually striking similarities to what is being done for the systems because they games are being produced at a similar time.
With the Wii and HD consoles it becomes somewhat difficult to compare them primarily because most of what was done was drastically different; and even if most Wii games were created with advanced HD graphics, or most HD console games were produced with graphics on par with the Wii, you wouldn't say that these systems were comparable. The Wii wasn't necessarily "less advanced" it was just focused on the advancement of games in a different way. To use an analogy from a different market, Nintendo was focused on producing a Prius while Microsoft was building a Mustang and Sony was producing a Camero; based on the single metric of "Horsepower" Sony and Microsoft are obviously more advanced, but when you expand the comparisons further it becomes less clear.
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