Agreed. Most games will look on-par with current-gen games; a small percentage will get the production values required to truely impress.
Guess who hit the nail on the head with this one?
"...we are aiming to make a system which shall not be forced into competing with the others where the contenders can fight only with massive developer resources and long development times as their weapons. ...in some software areas, we need to be engaged in the power games. ...When it is necessary, we do not hesitate to roll out our resources."
-Satoru Iwata on Wii U
Miyamoto also said a while ago (in so many words) that most of Nintendo's software wouldn't really push the hardware's capabilities; those efforts would be saved for the games that are expected to impress, like Zelda and Metroid.
Not only is this good for Nintendo, it's good for third parties on the same console -- a smaller studio can make games that look as good as or even better than most of Nintendo's first-party titles without having to compete financially with them.
Basically, Nintendo isn't going to play along with the development cost arms race, which is good for everyone.










