I love how people ***** about this speculation about a speculation.
When are you guys and girls going to realize that Nintendo didn't announce anything? NOTHING is confirmed jet.
Those hardware specs... yeah, they could be better, but don't need to. Since PS 3 and xbox 360 will stay on the market for several more years, developers won't make better games just to downgrade them for the PS and Xbox. They would make weaker games which would make the new N-console unused. Have you guys learned anything from the PC/console porting problem?. A standard gaming PC is several times more powerful then PS3, but the games look the same as on the PS3. Why? Because it's easier to make a weaker game, then later just add better looking textures. Crysis 1, a game made for the PC, old several years is still THE game if we look at the graphics.
(I just hope the next Battlefield proves me wrong. They are going to make it for the PC, and then downgrade it for the consoles)
Also, I'm not sure what to think about the controller. Although the touch screen could be really useful, it sounds like it would be HUGE. I mean, just the screen is 6 inch. The controller will be then at least 8 to 10.
But it does seem like it could be really useful if they make it a normal touch screen, not HD (overkill).
That would open a door for RTS games on consoles. Easier and faster selecting, faster moving over the map, be creative.
FPS, make the screen show some basig stats (ammo, hp, armor...), and abuse the fact that is similar to a mouse on a PC and allow the player to make fast 90+ degree turns. FPS was always better on PC (IMO) just because of the fact that you can easily make fast turns, look around faster.... it's faster, more action packed...
RPG and adventure. here it could be used so much that it's to great to skip.
Allowing faster usage of your inventory, switching equipment, map, faster interaction in shops and chats. A chat has 4 options? Split the screen in 4 ( + ) and they player can easily select an option without turning from the screen. Sell and buy easier with drag and drop on the screen, same as using equipment. But the best part is that you can switch items/equipment and use them without even breaking the action.
Fighting games.... remember those Tekken combo's? Those back, back, square, up, circle, down ,X .... etc...? yeah, what about allowing you to predefine some action with writing symbols of your liking on the screen? Like, you write a V on the screen, he does a nice long combo? Pressing 20 buttons in a row isn't hard nor is it skill. It's just annoying. yeah, it could be to powerful, simply put some limitations.
The screen still allows games similar to those from the DS. Which is a nice plus.
tl.dr:
1. Stop bitching, it's not even officially announced. For all we know, it could be completely fake and Nintendo won't make a new console until 2015.
2. Hardware specs aren't higher since developers won't make a game that will use the hardware. Same problem that we have on PC's. Much stronger then consoles but games look the same or only a bit better.
3. Although I'm worried that the controller would be too big, Nintendo's inovation is what keeps the game industry going forward. N64, first 64 bit processor used in a console (afaik) and first real 3D graphics. Gamecube, best hardware in that generation, tried several new stuff, like combining the GameBoy with consoles, using GameBoys as controllers. GameBoy, best hendheald.
DS, brought touch screen to us. Notice that Apple started using it AFTER the HUGE success of the DS? After that, every smartphone starts using TS (to shorten it).
3DS, 3D without glasses.
Wii, motion sensors. People can ***** about Nintendo for many things, but not for innovation, creativity and fun. In those parts, Nintendo is THE King. (no I don't mean Elvis, nor Jackson).
Damn.... even my tl.dr is to long......