Well, without getting too giddy.. it bodes well for Nintendo's prospects in this upcoming generation insofar as getting third party support is concerned.
If Sony goes the more modest, sustainable route with its hardware choices, then it seems like Sony and Nintendo will have their power on one tier, and Microsoft will have its power on another tier. With this configuration, third parties can't afford to write-off two weak consoles; had Sony gone with a more powerful console, third parties could have targeted that upper tier and left Nintendo in the dust, much like what happened with the Wii.