There are $200 tablets today with 7-8 inch HD screens that have chipsets more powerful than the Vita and more RAM right now.
Nintendo's portable Fusion will be able to run Wii U quality games at 540p-720p is my guess. 20nm System on Chip ARM CPU + AMD mobile GPU.
The home variant will be the same chip with more cores/RAM and run the same games at 1080p with maybe a few extra effects. Don't expect a super powerful console, I think the console version will actually be cheaper than the portable one.
AMD has also cryptically stated that they have two huge vendor deals for mobile GPUs to two vendors they can't talk about right now for 2016. It's quite possible one of those is Nintendo.
The iPhone 5s/iPad Air (last year's Apple A7 processor) destroys the Vita for performance, even if Nintendo went with that level of power in 2016 when it will be dated they would demolish the Vita. The Vita is basically the same chip as the iPad 3.
