That analyst is retarded and so is anybody else who expects Nintendo to "32X" their own userbase with some kind of mild increase in specs or abilities.
I'm gonna ignore all the jabber about how it's Nintendo's fault they've got bad third party support because they had the audacity to innovate controls and because third parties can't sell anything on Wii due to their own horrible reputations. We've had this argument before, and that was the losing side, mainly because all competitors are now aping said controls and a certain Wall of Shame made it plain as day that third parties, even the major ones, flooded the Wii market with crap which hurt their own positions and reputations. Unless Nintendo pointed guns at their heads and said "make garbage or I'll shoot you," then that's on them.
Anyway about the Wii successor...
A whole back I made a link between something Iwata said at E3 2006 about load times:
I am busier, busier than ever and if I have to wait 30 seconds or 40 seconds or more for a game to load, often, I get frustrated. And sometimes, I just can not wait. And now that I know I can instantly stop or start playing my DS by just closing or opening the top, I think I am spoiled.
This got me to thinking that the next console will ditch discs in favor of a cartridge or specialized SD card that ranges from 8-32GB, which will have a "large enough" capacity for all those mega epics and HD art assets, yet be small enough so that developers can use only what they need. Solid State ROMs like that are falling in price rapidly, as evidenced by Nintendo's use of a card that has a 2GB maximum capacity at launch for the 3DS. The sizes I propose should be cheap enough to buy in bulk in one and a half years.
But, that got me to thinking about loading speed in general, and how Nintendo could design a console that completely eliminates all forms of loading times, by utilizing both carts/cards and a 16, 32, or (hopefully cheap enough by then) 64 GB Solid State drive as the storage solution (This is already what the Wii has, really. It's just really tiny.) This allows for lighting fast read/write speeds compared to Hard disk and a generally more pleasant user experience as they never need to see a loading bar again.
Now sure, the size will be considered rather "puny" in 2011-2012 when I'm sure the PS4 and Xbox 3 will be looming with the possible promise of 2 terabyte hard drives to support a push for digital distribution. But Nintendo will not abandon retail models just yet. IN fact, if they remain the only video game console in retail stores that also sells games, they would have a significant advantage. Imagine walking into a Walmart/Gamestop and walking up to their case or wall of games and seeing that only 3DS and Wii2 games are even on the shelf, despite the Xbox 3 and the PS4 also being sold in the same store. Who will Walmart and Gamestop like more? A console that, once sold, basically guarantees you will never see that person again, or a console which ensures more foot traffic and sales?
This actually leaves their competition in somewhat of a pickle. They could go full DD get the benefit of saving money on retail products, but then they would cede a gargantuan retail market to a competitor. If they try a hybrid approach, they'll find it's actually more expensive than picking either one exclusively.
All the sundry aspects like the CPU, GPU, RAM, and internet connection can be beefed up accordingly. You can walk into a computer store and buy components that run rings around the CPU and GPUs of the Xbox 360 and PS3 for half the price they paid for them. That's raw technology for you. The Internet "experience" or whatever can be made to grab the best elements of Xbox Live, ditch the worst parts of Xbox Live and Wi-Fi Connection, and offer it free of charge. All of these will be upgraded in order to find that point where these abilities are "good enough" for your average consumer.
The controller will definitely have whatever advancements they make on Motion Plus already included, as well as possibly included into the nunchuck. I'm wondering if they should include a "classic controller" in the box or try to convert the Wiimote itself into something more "standard." Either way would be acceptable.
But, the main feature of the console should be speed of access. Do whatever you can to eliminate load times from the equation. Have a console that's quiet, rugged, and durable thanks to no moving parts, and have games load almost instantaneously. That will be a killer draw for the console.