The thing is, Nintendo consoles are so unique in the experience and quality they provide, nobody really cares that they don't have ALL THE GIGS. They're just a lot more fun.
That's their greatest strength and their greatest weakness. It shows that great games don't have to have top of the line graphics horsepower behind them but it also means pretty much every graphically intensive third party game will never be ported to the system (which only hurts the console in the long run).
I don't blame them for not chasing the top end but I just wish they'd come just a little closer to it.
Or they realize that comparing console hardware isn't a useful exercise. The upgrade cycle hasn't done anything to make games better in years; the Wii came closest, but required a marketing pivot that third parties didn't want to make.