What developers want, doesn't matter. What the market wants, is all that matters.
I don't see average people screaming around for vastly powerfull/expensive consoles. The console market is getting weaker by the year.
Average people aren't willing to spend too much money on it. Average people are actually moving towards just not caring anymore. They want to be amazed or surprised by something affordable.
IMO Nintendo made a right choice for chosing doing something new and to keep a low price. The extra increase of specs would do little.
Most (if not all) engines will have scalable versions for this generation. So why would you increase the price, for something the average consumer will barely miss or notice.
In the wilderness we go alone with our new knowledge and strength.
