If developers are only motivated to work on the largest projects for the most advanced hardware available than why are there so many games produced for the iPhone/iPod or Nintendo DS/3DS?
The reality is that there are (maybe) a few developers at the top couple dozen studios in the world that truly get to pick and choose the projects they work on, for everyone else it is a job where you're told what to do, when to do it and for what price. Certainly, it is a cool job for those who have it but the average developer gets joy out of trying to get that extra "ounce of power" or producing the most detailed artwork on the platform they're working on; which (more often than not) is on mobile phones, handheld systems, previous generation systems, underpowered systems, or for low budget games.
The question of whether "next generation development" will hurt or help the Wii U largely depends on what publishers decide is the best strategy. I don't doubt that the studios that produced the top 50 best selling multi-platform games for the PS3 and XBox 360 will probably be directed to big budget games; but I also expect that the typical Wii developer will be pushed towards the Wii U, with the typical HD console developer (who didn't see 1+ million in sales) will receive a similar budget to what they had with the HD consoles and (probably) focus on games being released to the XBox 360, PS3, Wii U, PS4 and XBox 720.
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