this is an important point.
many have used iwata's comments about graphics to bash nintendo, but taking a sentence out of context is a cheap way to do it.
over the last 2-3 years nintendo has been saying the same thing:
the time improved graphics increased videogame sales is over
not that graphics aren't important. those who read the interviews and watched the speeches know this.
if you disagree, fine, but videogame sales over the last 5+ years, the world over, have proved this.
the idea people who aren't playing games (including those who've stopped playing) will look at a next gen soccer game, racing game, fps, rpg, action adventure, etc, and start playing because the graphics are better is nonsense.