So, if 1gb is useable, then 1.5gb on the retail system? 512mb is a lot for the OS, but I wouldn't be surprised if they planned it so Netflix is streaming on the TV while junior plays New Super Mario on the tablet.
Considering how much resources your OS and API eat up on your PCs, it's really not that much.
Also about wii u reusing broadway processors as in decade old tech... And it's not really that bad.
How about your own PC using 30+ year old architecture (IBM PC was released in 1981)?
And processor in your PC using
40+ year old architecture (x86 started in 1978)?
And PCs are not reusing that decades old tech because it's perfect the way it is. Hell no. That policy of dragging 70s tech into new future caused lots and lots of problems starting from "problem 2000" and your Windows Vista losing 1Gb of your 4Gb memory.
But they keep it because PC have no generations when each time they have the opportunity to start from a clean slate. They have to keep BC at all times, not just between generations.
And so they add things like PCI, AGP, southern bridge -- all these patches to keep it relevant to times. And it just piles on and on. Overhead if enourmous.
And that's just hardware. Software legacy cost is even greater and cripples tech inside your PC even more.