Doesn't the short pipeline and the 32mb of fast RAM compensate?
EVERY other console on the market is running on a Power-based RISC processor, so not really. Fast RAM isn't quite as fast in 2012.
Graphically, the embedded RAM on the graphics chip is gloriously fantastic. It was a great idea on the Gamecube (poorly implemented on the PS2 so we won't talk about that), it's what lets the Xbox 360 keep up with the PS3 (despite technically, and only technically, having a slower GPU), and it'll bite anyone who doesn't invest in the idea come next gen HARD.
Clock-for-clock (so comparing per-mhz the Wii U to the 360/PS3), the Wii U has a better base processor. It has features missing from the other two that have been in processors since the bloody Pentium Pro. So mhz for mhz, it's faster. However, we're not going mhz vs mhz, we're going 1.2 x 3 VS 3.2 x 3 (yes, the 360 has three cores).
We're also talking about some extra features on the 360's CPU and the PS3's (the Cell's SPUs) that do not exist on the Wii U. Once again, you could write the same functions into graphics code, and because the RAM is shared between CPU and RAM, you could probably do this without any performance hit.
BUT, this kind of code doesn't really exist yet (or it sure as hell isn't common, as the Wii U is the first hardware to have this capability save for the AMD Fusion processor and a FAAAAR weaker/limited/probably-not-useful variant in the 360), and the way they've been doing it on the other two has had 5-6 years to mature.
I can't say I'm all that worried. The only games that are really gonna take a hit are ones that are CPU-bound, and regardless of what you saw at launch, that is the exception more than the rule. Games have always been mostly GPU-bound. What we saw in terms of launch was a launch lineup without much in the way of the more hardcore optimizations listed.
The fact of the matter is that we're on the precipice of using the shaders in a GPU to assist greatly in game logic. The way the next Xbox is designed, I can guarantee you we'll see that, and it's going to trickle-down to the Wii U. The drop from those consoles will not be anywhere near as bad is it was this gen, and not only because the Wii can output in high definition. What we'll have is a system with decent processors and a useful graphics chip going up against more expensive boxes with faster chips, and given how much of this generation was PC-like in games development, we'll probably land in a spot where the Wii is what they target for lower-end gaming rigs, and the next systems is where they drop off the higher-res stuff. So the difference is gonna amount to sliders in the PC version, rather than drasticly different ports by a different studio with little-if-any resemblance to the "mainline" version of a title.
Plus Nintendo stuff is gonna look SIIIIICK =3
--- Also, I still stand by my H.264 comment. Check out the WiiMC stuff, most of the videos they have running in 480p under H264 are Youtube clips, which have VERY low bitrates at a VERY simple profile and is all but violently removed from the version of that codec that goes into high definition vids outside of Youtube.