I'm not talking about the most technically demanding, that means nothing by itself. A game could have a billion pixels and still be an ugly mess.
Looking at Wii U games like Mario 3D world, DK and Pikmin 3, the 1080p Smash bros. and Mario Kart it's clear Wii U packs enough power to make games extremely appealing and isn't hindered at all in ways that Ps3 and 360 were.
Diminishing returns does come into play to a certain extent, and yes of course Wii U games would look a lot better still with extreme resolutions and textures, but the overall look would not be changed in a huge way with the same base art and technology.
Nintendo and its teams are talented as ever, the hardware isn't limiting, and I honestly can't see any developer on the more powerful consoles coming close to this talent.
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