I don't think Nintendo really gives two hoots about matching the PS4 in power anyway, I think that's a pissing match they moved away from getting involved in a long time ago.
Mario Kart 8 looks fantastic, it's clear the Wii U has enough power to make at least the games Nintendo wants to make look pretty nice.
If Fusion can run that level of graphics on a handheld at 540-720p and in full 1080p at home, I think Nintendo will be more than happy with that. Maybe throw in some more modern lighting/shader effects that give the impression of PS4/XB1-ish style graphics if a developer really wants to push it.
The whole point of Fusion in one sense is that Nintendo won't need third parties to have adequete software, it may actually be to their benefit to not have too much third party support in this scenario so all software sales are basically controlled directly by Nintendo.
$219.99 for the handheld variant (at launch)
$179.99-$199.99 for the home TV version (VitaTV style microconsole).
Is kinda what I see. Both use the same chipset like the iPhone-iPad use the same chips basically, just configured a little different (the iPad has a more powerful version of the chip with more RAM).