Ninty doesn't care what their graphics/power is like (well they do sorta) but they're now trying to make games more fun and for everyone. They've bumped up the graphics a little bit so that hardcore gamers wont complain, but their main target was to make fun games not to just improve graphics.
Now with their new technology in the controler, the Wii is the best lookin next gen console...as the PS3 doesn't offer anything much different, just improved graphics, and er blue-ray and the 360 has also got improed graphics, but at least the 360 has X-Box live etc
I just think the Wii doesnt need to be a emencly powerful console for what Nintendo are trying to do