Despite the upcoming release of the Wii U, Sony and Microsoft are already jumping ahead with their new consoles, which will probably sport even more beautiful graphics than the 360 and PS3. I think that Nintendo worked wonders with the visuals of Skyward Sword with the impressionist style, but the game's style still comes second to genuinely prettier graphics. Although I really want to see what the Wii U has in store for us, I'm sure that the Xbox 720 and PS4 will be able to top the new Wii's visuals, once again putting Nintendo on the underdeveloped side of the visual spectrum.
I'm sorry, but I disagree with the bolded statement. I can't get behind that notion at all. If we're talking purely the technical power, then yeah, you're right. Skyward Sword is on the Wii, and the Wii is simply not capable of what the 360 and PS3 can do. But I do not agree that more intensely realistic graphics are automatically "more beautiful" than stylized graphics, because like it or not,
realism is a style too. It's not objectively better, it's just different. It's true that realistic graphics require more effort and power to pull off, but that still doesn't make them superior because more effort and challenge doesn't automatically equal a superior thing.
Yes it's true that the next Microsoft and Sony consoles are certain to be more graphically powerful than the current consoles, and in all probability, Nintendo still won't match them exactly (although that's still uncertain and is an assumption), but that doesn't mean much, especially towards Nintendo's future success. Nintendo dominated with the Wii this generation, and with the DS even more so, despite having the least graphically impressive consoles this generation. And despite Skyward Sword falling behind graphically, it's still done exceedingly well (as Zelda games always do), and has still been praised for its visuals; not very many people have anything negative to say about Skyward Sword's graphics.
And regardless, Nintendo is, as I said,
moving in the direction you're discussing, so whatever concerns you have are being counteracted. And considering that they've been doing fine this generation even just completely ignoring the graphics issue implies that they'll do even better if they approach it at all, even if only in a minor way.