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Soundwave said:

But the home games should be able to run at full 1080p IMO. It needs to be a tangible leap beyond the Wii U when playing at home.

The problem is that going for full 1080p might actually prevent its graphics looking considerably better than Wii U, as a lot of its extra processing power would be used up just in the increase from 720p to 1080p. They'd probably be better off spending that extra power on graphical elements that are more noticeable, much like how most of the best looking Xbox One games shoot for 900p or 720p in favour of more detailed visuals.