Yeah, a majority of Nintendo's properties really benefit from not having to go super-realistic or anything. That's why I'm still impressed by games like Bayonetta 2 and Xenoblade. Though obviously not...y'know, SUPER-realistic, they definitely aren't cartoony or anything and look pretty darn good.
Sure, sure. Obviously, more power can never really hurt. But I'm finding that a lot of games this gen (at least so far) look pretty darn good despite there being a gap in graphics processing. It's not like we are dealing with the same gap as we did last gen, with Wii games "vs." PS3/360 games. There is still a difference, sure. But it's much smaller, at least IMO. (and I'd argue that even the gap last gen could be overlooked sometimes thanks to art direction)
Can't really argue there. Though I will point out that some of Capcom's studios have been able to push Nintendo's systems pretty far, either before Nintendo themselves have done it, or arguably farther. Maybe even Square. But yeah, Nintendo themselves have been the most consistent.