It would be folly for Nintendo not to include at a least a basic, working DVD player in their next console, backwards compatibility, built-in LAN. A hard drive? I dunno, can't see Nintendo doing it, but hey- its' Nintendo, so we don't know squat.
Seriously though, I believe console innovation has ended before it even began.
At this point, I think realism in gaming is now a moot point, only used by fanboys most. What could really be implemented in the next round of consoles? Advanced chipsets, etc doesn't count. Integration at this point is a given; it has already happened, even with Nintendo, at least in Japan(see Q).
Will there truly be a console hailed as revolutionary, not because its' a set-top box or implements existing PC technology? Probably not, consoles really are glorified PCs, with not much separating them besides slightly different hardware, size in many cases, and exclusive branding. The only way out of this is at least to do what Apple is doing- integrate everything so well that that in itself is the point of the system. Apple are being innovative in its' execution, and maybe Nintendo can capitalize on this idea. But really, this is a software issue...so, I'll spare you the rest of my ramblings....