I'm liking the visuals alot. These are the kind of visuals I would like for games like Super Mario honestly.

Sega quite suitably named it the CANVAS engine. I do wish more games used something like it...

I think sly and ni no kuni must be the two most beautiful cel shaded games I have seen as of now. What new hardware can do with the medium should be interesting.

..assuming someone try to do anything in the medium.  never understood how unpopular cell shaded graphic are.

yeah I don't get it either. I love it personally.

I actually realized a lot of people hate comic book style cut scenes as well...blew my mind tbh.

i dont think Nintendo will push cel-shading very much this gen

Cell shading, and Non-photorealistic rendering in general, can improve dramatically over what has been done but I don't expect to see much of it due to the poor reception most cell shaded games have gotten.

i think pretty much anything can be done (artistically) with current hardware. the only thing i see improving is better textures and rounder edges

There are lots of effects that are currently not being done in games that could enhance the look, but they require a lot of processing power:

http://www.google.ca/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CGMQFjAA&url=http%3A%2F%2F2011-ds-project.googlecode.com%2Ffiles%2Fcomputer-generated-graphite-pencil%2520Rendering%2520of%25203D.pdf&ei=K88RUK69HoH9igKMhoCQBw&usg=AFQjCNEo6CBfDNcBKsWBx0HkGCWbnOLJ1Q

Hating on cel-shaded? I can't even bloody begin to fathom. . .