Can't say that I really agree with Nintendo's take. Gameplay is important, but videogames are a visual medium. As such, the graphical presentation bares just as much importance as the playability.
I don't think it too fair to blame the console makers for the games that run on their platform. The developers and ultimately the gamers that buy the product are more to blame. If we as consumers would vote more seriously with our wallets, developers would have no choice but to follow our votes.
I think games like "Wanda...", "Okami", "Viewtiful Joe" are all great examples of graphically impressive and original games.
But then so are the more realistically styled Tom Clancy games, for example.
There's room for all kinds of games, but my whole point originally was to say that I think some titles are best suited to be presented in a stylized fashion.
I don't think the developers behind the HB games have the manpower to pull off the "real" look so, why attempt it... the logical thing to do is make it stylized. The player doesn't notice the mistakes as much.
ok, that's my rant for the day.