The thing is though, if you look at the way nintendo thinks and the way a lot of, especially western devs think, they're quite different.
Like you said, nintendo loves innovation and really does push the industry forward in such respects and everyone knows that. Yet, many devs even then, just prefer the blockbuster feel and pushing the best visuals. I lot of people in the west seem to care more about such things too, so I guess if there's that market...
But then if you also take a look at the best machines spec wise, they pretty much never end up well. It's pretty much always the weaker systems that come out way on top. DS, PSX, PS2, snes? etc. Of course, with the wii, while sales wise it's nuts, games wise, it wasn't the best, say compared to the PS2. Sure there were quite a lot of really good games, but not tons of them, nor were there many pretty good games that came out everywhere else. It's obviously a very hard balance, and obviously nintendo have again decided to not go the brute strength route, as we all know how that ends up, but hopefully this time it's good enough, or at least not too different/old to not allow devs to port easily to it. Controls wise and modern architecture wise, it looks like it's a lot easier to cater to than the wii was for the aforementioned devs at least.
