Don't misunderstand me as I agree with you on a lot of what you say in this thread but I don't beleive there will be anything like the leap from Gears 1 to Gears 3 on WiiU or Uncharted 1 to Uncharted 3 for that matter.
Two main reasons -
1. Artstyle - Most Nintendo games use the 'cartoony' artstyle so seeing advancements in a single console generation is much harder when comparing to a realistic artstyle.
2. Budget - Halo 3 cost $55 million to develop, Halo 4 cost a reported $100+ million. Same for Uncharted, the original cost just $20 million with the sequels reported to have cost closer to $50 million.
Not only do development teams become far more competent with the hardware after some years but they also have much larger budgets to work with on sequels which also shows in the leap between titles, something I just don't think Nintendo are interested in.
Iwata himself said the following this year -
http://www.nintendo.co.jp/ir/en/library/events/120127qa/04.html
"As we will showcase the Wii U at E3 in June this year, the detailed announcements must wait until then, but we are aiming to make a system which shall not be forced into competing with the others where the contenders can fight only with massive developer resources and long development times as their weapons. Having said that, however, as I mentioned, it is true that, in some software areas, we need to be engaged in the power games. Take The Legend of Zelda franchise, for example, the fans must be looking for the graphic representations that they do not see as cheap at all when the title is released for the Wii U. When it is necessary, we do not hesitate to role out our resources."
I don't want to take this thread OT but until Iwata leaves I can't see Nintendo ever matching the other consoles on tech or on software budgets. I really like the guy but part of me wants to see him step down in April so that we get a Nintendo console at least on par with XBO in Winter 2015/6.