Let's face it, most Nintendo games don't NEED to have the PS3's graphical quality. There's only so much you can do to render a Mario model. Throw some extra polies in here, some extra high quality textures there.. but at some point, there's not much more you can do to make him look better, except if you go for a realistic style, but that's not the style that suits Mario, or many of Nintendo's other games (Kirby, for instance). The few series of theirs I can think about that would greatly benefit from uber graphics would be Zelda and Metroid.
I'm happy with 3x the Gamecube's power, and I'll still be happy with 2x the power. Nintendo never promised, to my knowledge, that the Revo would be able to compete with the PS3 and XB360 in terms of graphics power, so that's not what I'm expecting.