Being "decently powerful" and not being primarily targeted at the Sony/MS demographic aren't mutually exclusive things.
Everything we've heard directly from Nintendo with regards to their new console seems to indicate they understand the Wii was a flash in the pan.
We won't be getting a 6 Tflop monster from Nintendo that's for sure. But something around PS4 level and I'm happy. Wii U games have looked fantastic to me (Mario Kart 8, Pikmin 3 and 3D world for example) and I've had most fun this gen on Wii U (W101, Bayonetta 2 and DKC:TF).
Nintendo don't need to compete on a technical level for me to be excited, they artistically out compete majority of Devs artistically to me personally. BOTW being the most talked about e3 game and garnering the most excitement without being a technical showpiece is testament to that.
Nintendo games at a PS4 level of fidelity excites me as a Nintendo game at e3 running on a X360 level device has excited gaf.
Edit: with regards to target demographic Nintendo's comments certainly indicate they know the Wii crowd as moved on. I find Ubi a hard company to take to seriously when making comments like this.