Yeah, art design > raw graphical power, any day. Wii U is capable of better graphics than PS3, most developers just don't bother pushing the hardware. Naturally, because of raw power, PS4 is capable of more complex graphics than Wii U, but the difference is minimal, compared to say, the massive gap between Wii and PS3.
I think that the final polished form of Zelda U will likely look a bit different from that early demo footage we saw. It will probably retain a similar art style, but just like TP's final look was tweaked from it's early footage, I think this will be as well. And yes, chances are, it will be one of the prettiest games this gen, Zelda games usually are.







