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Okay, since everyone else is dealing with the technical and artstyle angles (and doing a very good job of doing so, I may add), I'll deal with another.

Specifically, that Mario is not Nintendo as a whole.

I can name quite a few Nintendo franchises that would definitely benefit from more powerful hardware - Xenoblade, Metroid (Prime), Pilotwings, Starfox, Pikmin. I'm sure that there are more first-party ones that I've missed.

Then, of course, there is the possibility that 3D Zelda would switch back to a more realistic artstyle in the future, but that's another discussion entirely.



 
I WON A BET AGAINST AZUREN! WOOOOOOOOOOAAAAAAAAHHHHHHHHHHHHHHHHHHH

:3