One of the side-effects of the Wii's popularity will be that most developers will be far more likely to develop games at graphical quality the game can support rather than what the hardware can do. This doesn't mean that all games will use 'outdated' graphics (as some HD-Fanboys would call them), but you will probably only see the big-budget blockbusters attempt to produce graphics which take full advantage of the hardware they're given.
On top of this, when the next consoles are being released the integrated GPUs and CPUs (and bargain basement CPUs) will outperform the PS3 and XBox 360's hardware; to produce a console that is 4 times as powerful and can be sold at $200 for a profit (or small loss) will be very easy.
My personal expectations are that the next consoles will be much more powerful than the HD consoles currently are, but the combination of diminishing returns on processing power and processing power 'wasted' in ways people don't notice will result in it seeming like a small step. In order to explain what I mean, if you take a game that surpasses Crysis on ultra high and display it at 1080p @60fps with full AA and AF it would require hardware that is far above the HD consoles; at the same time the average consumer will say "It looks like a PS3/XBox 360 game" or if they're really lucky "It looks slightly better than a PS3/XBox 360 game" ...







