I see your point but in three years all the next gen system will be on the market and people will be comparing it to those which won't help it either. Even if it is the launch of the system it's not crazy to expect it to out perform our current 7 year old hardware.
Even if, what will those people say? PS4/720 games locks "fantastic" and Wii U games look "very good?".
Don't people realizse that we've reached a point in graphical fidelity at which it's almost impossible to call a game "bad looking".
Excample. Don't we have games on PC that visually outclass PS3/360 games by quite a margin? But what does that mean? Do games like Uncharted, Halo 4 or Mario Galaxy 2 suddenly become "bad looking".
This USED to be a problem years ago on PS1, when those 3D graphics were miles away from the visuals developers or gamers dreamed about.
For example. The visual to make a rock look like a rock. With bump mapping, higher poligon counts we're at a point where a rock is so close to what we - as gamers - think a good-looking rock should look like that it won't age bad.
Same with Wii U graphics. I'm sure games like GTA 5 are possible on it. MGS5, Halo 4 no problem. Do we really need games that are PRETTIER than that. Current gen visuals (Wii U included) will not age badly.
Even if prettier PS4/720 graphics come out, they will still look very good. We also must no forget that not all video-game genres NEED super-realistic/photo realistic visuals. A Super Mario Galaxy 3, Metroid Prime 4 or Mother Hunter 5 (provided they use an entirely new engine) will STILL look FANTASTIC, eventhough they might be games out there with even higher poligon counts, shaders, effects and whatnot.