You guys need to understand that powerful consoles bleed money through hardware. A very powerful console will only give Nintendo fans ammunition for console wars. Nintendo proved that they can be successful without having a powerful console with the Wii.
Matching the current consoles would be helpful for Nintendo in gaining some third party ports, unless the lack of 3rd party games goes deeper with other issues, which may be the case. There is the "how easy is to develop for NX" thing to consider as well.
If the issue is releasing an underpowered console for next generation by Nintendo (becoming soon obsolete once Micro and Sony release their next consoles) I'd say this problem Nintendo may face will be more due to their own choice of releasing too early instead of waiting a while longer when hardware will be cheaper and able to reduce cost for a more powerful console.
Where did the "Graphics don't matter" rhetoric go for Nintendo fans?
Nintendo is selling their IPs to Microsoft and this is true because:
http://gamrconnect.vgchartz.com/thread.php?id=221391&page=1
