Yeah, Nintendo's definitely right in that we've reached a point of diminishing returns on graphics. It seems like now they're just trying to make fancier machines that do other shit, only some of which actually enhances the gaming experience.
Honestly, I just want it to get to the point where gaming becomes a streaming service, a la Netflix. We can subscribe to the Nintendo/Sony/Microsoft service through our AppleTV, Roku, BluRay Player, SmartTV, Cable Box, whatever, sync up a controller or peripheral, and go. I'm thinking the days of buying three separate proprietary boxes are coming to an end.