For like a year... And don't forget it's gonna take at least a year for games to actually start looking better.
Yes, but you're going to have a team like EAD Tokyo pushing it. A team that can take a GCN with more RAM, masterfully hide deficiencies, and come up with titles like SMG1&2. Games that are beautiful as they are, and only improved through higher resolution. That team is going to be working on a system more powerful than either of Sony or MS current offerings and they'll still be that team. That team that pushed GCN era tech like they did. These guys in technical acumen, and artistic merit are on the level of Naughty Dog. Hiding inadequacies to achieve a bar higher than is perceived possible.
I have no doubt that they will produce a title that will stand up well to Pixaresque endeavors on Durango or Orbis.
But when striving for realism? Pure geometric detail, texture detail, effect precision? The system will always come up short after next year.
But that in no way means the same thing it meant this gen, or last.
This past gen the weakest system was the Wii. At it's maximum it is at least 10x weaker in pure poly output. It featured an antiquated GPU design that made easy porting all but impossible. Through the way it approached shaders, to it's lack of any GPU assisted Dot3 calculation, it's max poly throughput, and pixel fillrate. It can't achieve anything that the other two systems did easily.
WiiU and on that is an entirely different ballgame. It will lack the horsepower to do effects at the precision of those other two systems, but the underlying codebase will be similar.
I'm not saying it will be pretty. But this isn't the Wii situation. It's nowhere close just because of the move to a more modern GPU design.