Damn it Ian, did your read my entire post?
In case you didn't, I said this: They are basically saying "Hey we have graphics just like those other consoles, but we have something they don't have!" That's why they down-play graphics as a whole.
It's a smart move to have what the competitors have, but to also downplay it, if that's the main concept competitors are reaching for. I'm not sure with all this WhiteFang crap that's been going around, but I can almost say that the PS3 is going to be a graphics-junky. If Nintendo can pump out similar type graphics, but also give amazing innovative gameplay, then they have it made. They need to come out of the gate the quickest, so that third-parties tag along. That's a tough thing to do, considering the PS3 has it's glorified name. But like Rick said, if they can provide a non-gimmicky innovation to the video-game industry, that not only allows all games to be played, but allows for new, ground-breaking exclusives......THEY GOT IT MADE.
It's hard to see that happening though, especially with Nintendo's track record. Although, I think it's safe to assume that they will come in 2nd this generation (in the US that is). They are launching online WiFi or whatever that's free, to combat Xbox Live, and hopefully it is more powerful than the Xbox 2. As long as Microsoft doesn't have a new super killer app to carry the system, which seems unlikely, I think it's safe to assume Nintendo will gain back previously lost marketshare.