i think the graphics issue is not really how we think, but the sometimes silly attitudes Nintendo can have. i cant remember it was either Iwata or Miyamoto but they said that Twilight Princess looked as good as next-gen games. i don't care how you feel about how good the graphics on the x360 is, but TP does in no way compare visually to a game like Project Gotham 3.
im no graphics whore and i dont care if we dont get high end, and i dont care about the lack of HD, its just that Nintendo sometimes make silly statements like that which could mean they have overexagered other things they have said.